Office Buildings from 1,000 SF to 5,000 SF in Size (Data & Charts from CoStar)

The chart displayed above represents the sales price trend based on the average sales price per square foot for smaller offices (1,000 to 5,000 square feet) in Pinellas 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 $90/SF to $140/SF from 2012 through most of 2016. In 2017, prices began escalating out of the range of the prior 4 years. In more recent quarters from 2021 through 2023, the average price per square foot has ranged from around $160/SF to nearly $280/SF. This change in prices represents a near doubling in the average price per square foot for small office space in Pinellas County over the last decade. 

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

·        2014 - $90/SF to $160/SF

·        2015 - $80/SF to $140/SF

·        2016 - $120/SF to $135/SF

·        2017 - $150/SF to $220/SF

·        2018 - $130/SF to $190/SF

·        2019 -$150/SF to $160/SF

·        2020 - $135/SF to $240/SF

·        2021 - $160/SF to $230/SF

·        2022 -$230/SF to $250/SF

·        2023 YTD - $210/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 in Pinellas County, Florida. The overall trend in $ volume of transactions has been upward for most of the last 10 years. The fourth quarter of 2021 had the highest sale volume of just over $35 million in transactions. In 2022, sales volumes began to decline slightly, ranging between $14 to $24 million in sales volume for the year. Sales volume decreased in the first two quarters of 2023, and the second quarter recorded $9 million in transactions, the lowest since the second quarter of 2020. The third quarter of 2023 saw an increase in sales volumes, jumping up to $17 million. 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 2018, asking rent nudged upwards year over year. In the beginning of 2019 through 2020 average asking rents for small office spaces jumped from $17 to $22 per square foot. Since 2021, asking rents have continuously risen from a low of $21/SF in the first quarter of 2021, and a high of $29/SF in the third quarter of 2023. 

The vacancy rate for small office space in Pinellas County trended downward and stabilized between 2014 and 2018, with an increase in vacancy beginning in 2019 and peaking at just over 7% in the first quarter of 2021. A sharp decline was seen after the first quarter of 2021, reaching a low of nearly 2% in the second quarter of 2022. After the second quarter of 2022, vacancy rates slightly increased to just over 3%, and it is projected that vacancy rates will increase to nearly 4% by 2024 and remain stabilized.