Despite economic headwinds, office owners’ expectations remain misaligned in Tampa - United States
Despite economic headwinds, office owners’ expectations remain misaligned in Tampa
Amidst economic uncertainty surrounding office buildings since the pandemic, demand for these properties remains at historic lows; however, owners’ expectations of asset values are still misaligned with market conditions.
The average asking sale price for office buildings in Tampa rose 21.3% year over year to $199 per square foot (psf), while the average sale price only increased 1.8% during the same time to $195 psf. Pricing is expected to continue softening in the near term as the economic headwinds persist.
As of mid-October, active buyers in the market are seeking distressed assets at discounted prices as the future of office utilization remains in question, creating a noticeable gap between sellers’ and buyers’ expectations regarding office pricing.