Experts are positive about the local commercial real estate in Tampa Bay for at least two years.
“We’re talking about 41,400 jobs this past 2015 in the Tampa Bay market. We saw a 20 percent drop in the office inventory year-over-year, and we’re seeing single-digit vacancy numbers,” said Larry Feldman, head of Feldman Equities in St. Petersburg, according to the Tampa Tribune. “I see development occurring, and I see it being very viable, and I don’t see this cycle anything like the last cycle. I really see this as a slow, steady, nice recovery without excess like we’ve seen in the past.”
Forecasts of the real estate was given by keynote speaker Jeff Vinik during the 2016 Trends Conference, which is an annual event organized by the Urban Land Institute Tampa Bay. The bullish report came out after 425 real estate operators were updated on Vinik's $2 billion development on the 40 acres lot around Amalie Arena.
Future residential developments that are proposed in downtown Tampa include 16 high-rise or mid-rise residential complexes. Vinik mentioned that residential development in the area had been stagnant for about a decade already.
He added that there is a high demand for urban living and that it is just right to have many buildings in the area for residential purposes. He also said that an economic slowdown can be answered by building more residential structures which is what the market is waiting for.
But for now, no economic issues is expected from commercial development that include offices, multifamily, planned development and lodging for the next two years.
Pollack Shores Real Estate Group partner, Anthony Everett, said the multifamily market was dominated by baby boomers who is observed to rent by necessity.
“We’re seeing a lot more renting by choice, we’re seeing the millennial push that we’ve expected for about 10 years now, so demand is very high,” said Everett. “Going forward the next few years, demand is going to stay high.”
