The above chart displays the sales price trend based on the average price per square foot for smaller offices in Hillsborough County, Florida. Over the last decade the small office market has experienced an upward trend in the average price per square foot of building area. The average price per square foot ranged from $100/SF to $140/SF from 2012 through most of 2015. In 2016 prices began escalating out of that range of the prior 3 years. Over the more recent 2021 and 2022 period the average price per square foot has ranged from $200/SF up to almost $280/SF. This change in prices represents a near doubling in the average price per square foot of small office space in Hillsborough County, Florida over the last decade.

Average Office Prices ($/SF) – 1,000 SF to 5,000 SF Office Buildings

• 2nd half of 2012 - $120/SF
• 2013 - $100/SF to $140/SF
• 2014 - $90/SF to $150/SF
• 2015 - $130/SF to $150/SF
• 2016 - $150/SF to $220/SF
• 2017 - $135/SF to $165/SF
• 2018 - $160/SF to $215/SF
• 2019 - $160/SF to $215/SF
• 2020 - $175/SF to $220/SF
• 2021 - $190/SF to $275/SF
• 2022 YTD - $200/SF to $270/SF
  

The above chart displays the total dollar volume of transactions that have occurred over the last decade for small office properties ranging in size from 1,000 SF to 5,000 SF. The overall trend in $ volume of transactions has been upward over the last 10 years. The last 3 quarters of 2021 and the 1^st half of 2022 volume jumped and ranged between $25 million and $30 million per quarter with the 3^rd quarter of 2021 having over $30 million in transaction $ volume. The below chart overlays the trend in average price per square foot with the trend in total dollar volume of transactions.

Asking rents for small office space have also been on the rise over the last decade. From 2012 to 2017 asking rent nudge upward year over year. Then in the tail end of 2018 and through 2019 average asking rents for small office spaces jumped $6 to $7 per square foot and then stabilized more gradual increases over the last 2 years. 

The vacancy rate for small office space in Hillsborough County has trended downward over the last decade after reaching a high of 14% vacancy in 2012. By 2018 average market wide vacancy had reached 5% to 6% range and stabilized at that level for a few years. More recently over the 2^nd half of 2021 and 1^st half od 2022 vacancy rates for small office space (1,000 SF to 5,000 SF) in Hillsborough County dropped from 6% to sub 4%. 

For more information or to get help in determining the value of your property please call or email Mike Cliggitt, MAI, MRICS, CCIM! 

Thanks for your interest.

Mike Cliggitt, MAI, MRICS, CCIM

813-405-1705 Direct Line

findvalue@cliggitt.com

Tampa Office Real Estate Appraiser