How have concession packages in class A/trophy and class B office properties in Tampa changed since 2020?

graph of average tenant improvement allowances and months of free rent offered in trophy/class A vs. class B office properties in Tampa from 2018 to 2023
  • With the surge of available office space since the pandemic, owners are increasingly utilizing lease concessions to incentivize tenant demand.
  • Class A/trophy properties have shown a significant increase in tenant improvement (TI) allowances since 2020, as businesses prioritize premium workspaces to bring employees back. Initially, class B landlords focused on free months of rent post-pandemic but have since shifted to align with the trend of emphasizing TI allowances.
  • Since 2020, class A/trophy properties have witnessed a consistent increase in average TI allowances, registering a remarkable surge of 39.9%. In contrast, the average duration of free rent months on these properties has remained steady at an average of seven months during the same period.
  • Class B buildings experienced a 16.2% year-over-year decline in average TI allowances in 2021; however, since then, there has been a notable rebound, with TI allowances increasing by 21.7%. In 2021, these properties briefly saw a substantial 26.9% rise in average free rent months, which reverted to the current average of five months in late 2023—consistent with 2020 figures.

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