Engage in Tampa Bay_Q419

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TAMPA BAY engage in Q4 2019

CULTURE tampa bay

Millennials are choosing Tampa Bay as their home.

It is a place where our people are happy living and working where most only vacation. Tampa Bay is defined by three cities – Tampa, St. Petersburg and Clearwater, with each city contributing to the area’s tropical landscape and dynamic living environment. From a business perspective, highlights of the Tampa Bay market include Tampa CBD, Westshore, St. Petersburg CBD, Ybor City, the I-75 Corridor, and Gateway. All of these submarkets provide a short commute time, active business climate, wonderful quality of life, talented professionals, low cost of living, and low labor cost. Last but not least, the weather is beautiful all year round!

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City of Tampa named the "Most Livable" city in the United States usmayors.org/city-livability, 2018

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Tampa Bay is the spot in the Americans are moving to according to Forbes Magazine. #1 no state income tax, affordable housing, & strong job creation top 3 reasons country

Nearly a quarter of all adults living in Hillsborough County are between 18-34 years of age. - Tampa EDC

B E S T B E E R T O W N I N A M E R I C A #2 Tampa ranks

USA Today and 10Best

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FLORIDA # 2 RANKED

BEST STATE FOR BUSINESS according to Chief Executive Magazine

45.3%

of millennials occupy white collar jobs. Hillsborough County boasts a higher percentage of college graduates than competing markets in the South.

Money Magazine ranks Tampa as the Best City in the Southeast.

Cushman & Wakefield

over 8.5 MILLION SF

has been leased over the past three years

LABOR POOL & TALENT • Population of Millennials with college degrees grew nearly 41% in the past 12 years • Tampa Bay claims 20% of the state’s IT workforce TampaEDC.com • Millennials make up 24% of the overall Tampa population ESRI, 2017 • Tampa ranked in the Top 10 Best Performing City in the Southeast Best Cities, January 2018

BUSINESS ENVIRONMENT • Best Small Business Cities - Tampa-St. Petersburg - No. 19 Biz2Credit • #6 most cost-friendly U.S. Business location Tampa EDC • 1st and 3rd ranked cities for Millennials in Florida NerdWallet, 2015 • Pro-Business local and state government officials

AFFORDABILITY & HOUSING • Tampa has the lowest housing cost among Florida metros. TampaEDC.com • Favorable tax climate; no personal income tax • Tampa’s cost of living ranks below the national average by 5% as of year-end 2017. Tampa EDC Cost of Living Index 4Q17 | TampaEDC.com • The cost-of-living in Tampa Bay is half that of San Francisco or Manhattan Tampa Bay Technology Forum | tbtf.org

WORK/LIFE BALANCE • 361 Days of Sunshine each Year

• 35 miles of Beaches • Professional Sporting Events Including The Lightning, Rays, & Buccaneers • World class fishing/boating • Tampa is a top Beer City in America TampaEDC.com

Millennial Matter, TampaEDC.com

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One of America’s Hottest Cities to Live and Visit The Huffington Post, 2016 St. Petersburg is recognized as

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SNAPSHOT tampa bay msa

The Tampa-St. Petersburg- Clearwater (MSA) on Florida’s West Coast is composed of Hillsborough, Pinellas, Pasco, and Hernando counties. The region contains the third and fourth largest cities in the state, Tampa and St. Petersburg. With over 3.0 million people, Tampa Bay is the third largest MSA in the Southeast.

Recent Expansions and Relocations • Fanatics - Westshore

91,980 SF in Relocation • WeWork - Tampa CBD 50,000 SF in Heights Union 60,000 SF in 501 East Kennedy • AxoGen - Tampa CBD

Hernando

Pasco

Pinellas

Hillsborough

75,000 SF Headquarters • ReliaQuest - Westshore 75,000 SF Headquarters • Surgery Partners - Westshore 30,000 SF Headquarters • BayCare - Westshore 73,180 SF Expansion • PwC - Westshore 250,000 SF Expansion • Ashcomm (Ashley Furniture Industries) - Ybor City 80,000 SF U.S. E-Commerce Headquarters

Average Income: $76,285

Population Growth (2010-2019): 11.2%

1,406,800 Employed

• USAA - I-75 Corridor 240,000 SF Expansion • Ironman – Westshore Headquarters Expansion (70 New Jobs) • Greenway Health – Westshore 130,000 SF Headquarters Expansion • Amgen – Westshore 125,000 SF Headquarters • AAA – Westshore 150,000 SF Headquarters

Job Growth: 31,000 YOY

Residential: 1,442,461

Office Inventory: 42,641,301 SF

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DRIVERS economic

Tampa / St. Petersburg’s growing consumer market and easy connections to South Florida and markets to the north, easily make the Tampa/St. Petersburg region one of the more diverse and dynamic areas of the country. It is home to many leading logistics, financial activities and business services firms. Tourism is also playing an increasingly important part in the region’s economy, growing significantly over the past ten years. The combination of Port Tampa Bay, Tampa International Airport (TIA), CSX rail, and major highways has positioned Tampa as the market of choice for major distributors such as Amazon and Coca-Cola Refreshments. Port Tampa Bay

and TIA combined contribute $22.5 billion annually to the local economy and support approximately 160,000 jobs. Cushman &Wakefield Research

Tourism

Global Headquarters

International Airports

Ports

MacDill Air Force Base

Professional Sports

Higher Education

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TRANSPORTATION tampa bay

Tampa Bay MSA’s transportation system anticipates continuous improvements to accommodate the area’s growth. • Hillsborough County recently approved a 1.5% addition to the State’s sales tax rate bringing it to 8.2% total. The additional revenue is earmarked for infrastructure improvements within the County, individual cities, and school board. • 2 Phase streetcar extension planned for completion by January 2024, will connect downtown Tampa to the Heights along with system modernization of the exisitng vehicles, track and stations. • Pasco County’s S.R. 54 (east/west) has been widened to four and six lanes and is now connected to a new interchange at I-75. • U.S. Highway 41, a major north/south thoroughfare in Pasco County, is also undergoing widening of its highly traveled lanes. • The Suncoast Parkway has recently seen completion into mid-Hernando County extending the Veteran’s Expressway further north in the MSA, creating an improved north/south route for Hillsborough, Pasco and Hernando County communities.

Road Widening Underway

2 International Airports

3 Interstates

7th Largest Seaport in the U.S.

CSX Advanced Intermodal Terminal

2 Toll Roads

Tampa International Airport

Tampa International Airport (TPA) has experienced tremendous growth over the past ten years. It is the 31st busiest airport by passenger movements in North America. The Airport is midway through a $620 million expansion that will accommodate 40 million passengers expected by the year 2020.

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EMPLOYMENT tampa bay

Top Corporate Employers

Corporate Headquarters in Tampa Bay

Local Employees

Company

Tampa Bay Employment Data December 2019

Baycare Health System, Inc 22,900

Jabil Circuit

2,000

Publix Super Markets Stores 13,000

Publix Super Markets, Inc 33,000

Home Shopping Network 10,550

Bloomin’ Brands, Inc.

5,300

University of South Florida 9,000

Sykes Enterprises

Tech Data Corp

6,900

BayCare Health System 22,900

WellCare

6,700

University of South Florida 16,488

Tampa General Hospital

6,500

Raymond James Financial

4,217

Verizon

6,000

Masonite International Corp. 100

JP Morgan Chase

5,100

Tech Data

1,500

19 CORPORATE HQ WITH $1B+ ANNUAL REVENUE

Citi

4,300

HSN, Inc.

3,000

Moffitt Cancer Center

4,200

Tampa General Hospital

6,500

Walter Investment Management Corp.

Busch Gardens

4,000

7 FORTUNE 1000 COMPANIES

MacDill Air Force Base

4,000

Brown & Brown

160

Raymond James Financial

4,000

WellCare Health Plans

3,190

Florida Hospital

3,300

H. Lee Moffitt Cancer Center & Research Institute 4,567 Cott Corp. 300

31,000 jobs added over the past 12 months (as of December 2019)

Caspers Company

3,200

Beall's

3,199

TECO Energy

2,500

Progressive

3,000

St. Petersburg College

3,209

Gerdau Ameristeel US, Inc.

2,600

All Childrens Hospital

3,100

HCA Healthcare

2,600

Kforce

739

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Q4 2019 MARKETBEAT tampa/hillsborough county

473 TOTAL BUILDINGS

42,641,301 SF TOTAL INVENTORY

Tampa Office Economic Indicators

Market Indicators (Overall, All Classes)

Q4 18 Q4 19 12-Month Forecast

Tampa Bay MSA Employment

Vacancy

11.9% 13.8%

1.36 M 1.40 M

2,620,662 SF 2019 LEASING ACTIVITY

YTD Net Absorption (sf) +342k -325k Under Construction (sf) 580k 1.3 M Average Asking Rents* $25.22 $27.54

Tampa (Hillsborough) Unemployment

2.9% 3.1%

U.S. Unemployment 3.7% 3.6%

CONSTRUCTION AND DEVELOPMENT UPDATES

*Numbers above are monthly figures, December 2019 FL Dept. Economic OPP.

* Rental rates reflect gross asking $psf/year.

At the close of the third quarter, there was approximately 1.3million square feet of office space under construction. The third quarter marked the most office construction the market experienced since the second quarter of 2008. The CBD led with 825,000 sf under construction, the highest level since the early 1990’s. In late 2018, SoHo Capital’s Heights Union broke ground on two 150,000 sf buildings in a mixed-used development including a food and event hall called Armature Works. Pre-leasing activity has been robust with a 75,000-sf lease to Axogen in the first building and a 50,000-sf lease by WeWork in the second building. Both buildings will be completed by mid-2020. In addition, 1001 Water Street was underway, a 380,000-sf free-standing office building located in Strategic Property Partners’ (SPP) Water Street, a multi-billion dollar mixed-used project backed by Lightning owner Jeff Vinik and Bill Gates. It was the second office building under construction in the project, joining the 150,000-sf office portion of the mixed-used development Sparkman Wharf. Sparkman Wharf was slated for completion in mid- 2020 with 1001 Water Street following in mid-2021.

ECONOMY The unemployment rate in Tampa/Hillsborough County fell by 10 basis points (bps) over the past twelve months to 3.4%. Tampa Bay’s economy accelerated over the past year, adding 21,700 jobs for an annual growth rate of 1.6%. Financial Activities had the highest annual growth rate when compared to all other Florida metros, adding 3,400 jobs for an annual increase of 2.9%. The Professional & Business Services sector had the second highest annual job growth rate adding 6,000 jobs, an increase of 2.4% year-over-year (YOY). CLASS A SPACE DRIVES THE MARKET Overall market rents increased by 3.4% to $27.11 per square foot (psf) full service. Class A rents closed out the third quarter up 2.0% to $30.89 psf, marking the second consecutive quarter overall Class A rents have averaged over $30.00 psf. Class A rental rate gains were bolstered by the Central Business District (CBD) and Westshore submarkets which rose 3.1% to $32.77 psf and 10.7% to $35.99 psf, respectively. Class A asking rents in Westshore rose to its highest level ever recorded for the submarket.

Class A asking rents inWestshore rose to its highest level ever recorded for the submarket.

CLICK FOR FULL MARKETBEAT REPORT

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DEVELOPMENT TIMELINE I tampa bay DEVELOPMENT TIMELINE T M ta pa bay

ONE-OFFS

MIDTOWN TAMPA WESTTOWER

CORPORATE CENTER V

INDEPENDENCE PARK II

SIZE: 70,000 SF - 750,000 SF SUBMARKET: WESTSHORE MIDTOWN TAMPA

RENAISSANCE CENTER VII

SKYVIEW PLAZA

CENTRO YBOR REDEVELOPMENT

SIZE: 115,000 SF SUBMARKET: NORTHWEST

SIZE: 100,000 SF SUBMARKET: WESTSHORE

CYPRESS CENTER IV

SPARKMAN WHARF

1001 WATER STREET

400 CHANNELSIDE

EISENHOWER II

09/23/2016

SIZE: 380,000 SF WATER STREET OFFICE SUBMARKET: TAMPA CBD

SIZE: 150,000 SF SUBMARKET: TAMPA CBD

LAUREL STREET

SIZE: 500,000 SF WATER STREET OFFICE SUBMARKET: TAMPA CBD

HEIGHTS UNION

FrontageRoad

A-301

LimitedSchematicDesign

PERSPECTIVE

SKYCENTER ONE

RIVERWALK PLACE

BAY CENTER II

SIZE: 300,000 SF 2 BUILDINGS SUBMARKET: TAMPA CBD

WEST VIEW CORPORATE CENTER

SIZE: 270,00 SF SUBMARKET: WESTSHORE

CONDOS AND RETAIL SUBMARKET: TAMPA CBD

ESTIMATED COMPLETION 2020

ESTIMATED COMPLETION 2021

ESTIMATED COMPLETION 2022

ESTIMATED COMPLETION 2023 AND BEYOND

TODAY

TOMORROW

FUTURE

CLICK FOR AN UPDATE ON TAMPA'S ACTIVE OFFICE DEVELOPMENT

©2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

QTI (“Qualified Tax Industry”) Tax Refund Program • Employer is eligible for a tax refund of up to $5,000 per new job created. • Incentives are based on type of industry, number of jobs created, average wages, and capital investment. Quick Response Training Grant Program • Designed to assist existing businesses with the necessary training for retention and expansion. • Reimbursement program that enables Florida to retain, expand, and attract employers offering high-quality jobs. • Amount awarded to each company is determined by the number of jobs and type of training needed. TIF’s (“Tax Increment Financing”) • Designed to abate property tax; usually single tenant Buildings with large capital investment. • If project is multi-tenanted, could be difficult to secure. • Public approval process based on improvements to the Buildings. INCENTIVES overview of

CLEARWATE DOWNTOW

699

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submarket spotlight Q4 2019

581

597

NORTH PINELLAS

Ehrlich Rd

301

593

TOLL 589

Tampa CBD Inventory: 6,059,064 Class A Vacancy: 7.6% Class A Asking Rents: $34.09 Westshore Inventory: 12,716,545 Class A Vacancy: 10.8% Class A Asking Rents: $37.54 Ybor City Inventory: 170,148 Overall Vacancy: 0.00% I-75 Corridor Inventory: 7,171,055 Class A Vacancy: 10.7% Class A Asking Rents: $25.44 St. Petersburg CBD Inventory: 2,038,302 Class A Vacancy: 7.7% Class A Asking Rents: $32.17 Gateway Inventory: 4,527,426 SF Class A Vacancy: 9.6% Class A Asking Rents: $26.22

580

COUNTRYSIDE

275

NORTHWEST

I-75 CORRIDOR

4 4

Clearwater Exec. Airport

Old Tampa Bay

WESTSHORE

Tampa International Airport

301

YBOR CITY

TOLL 618

275

Port Tampa Bay

BAYSIDE

St. Petersburg International Airport

HYDE PARK

TAMPA CBD

GATEWAY / MID-PINELLAS

SOUTHWEST

MacDill AFB

SOUTH ST. PETERSBURG

I-375

ST. PETERSBURG DOWNTOWN

I-175

Port of St. Petersburg

Tampa Bay

674

Cushman & Wakefield

The Riverwalk was nominated and won the American Planning Association's 2018 People's Choice for Great Places in America!

COUNT

Clea Exec

CLEARWATER DOWNTOWN

BAYSID

TAMPA CBD welcome to

GATEWAY /

699

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TOLL 589

tampa cbd submarket spotlight Q4 2019

581

597

ORTH ELLAS

Ehrlich Rd

301

593

TOLL 589

580

YSIDE

275

NORTHWEST

I-75 CORRIDOR

4 4

Inventory 6,059,064 SF Direct Vacancy—Class A 7.60% Direct Asking Rent—Class A $34.09

water Airport

Old Tampa Bay

WESTSHORE

Tampa International Airport

301

YBOR CITY

TOLL 618

275

Port Tampa Bay

St. Petersburg International Airport

HYDE PARK

TAMPA CBD

ID-PINELLAS

SOUTHWEST

MacDill AFB

SOUTH T. PETERSBURG

I-375

ST. PETERSBURG DOWNTOWN

Cushman & Wakefield

I-175

TAMPA'S CBD HAS NO EXISTING LARGE BLOCKS OF SPACE

CURRENT SITUATION

Major Leases Building

Tenant

Deal Type

100 North Tampa

Holland & Knight

63,514 Renewal

MAJOR CURRENT AVAILABILITIES 30,000+ SF Spaces Class A • Wells Fargo Center 39,046 15th & 16th Floor

501 East Kennedy

WeWork

61,805 New

Tampa City Center

Morgan & Morgan

60,052 Renewal

SunTrust Financial Centre

Industrious

20,026 Expansion

Association to Advance Collegiate Schools of Business

One Harbour Place

22,883 Renewal

Major Sales Quarter Sold Building

Buyer

Seller

Price

Price PSF

4Q19

WeWork Place

Parkway

Angelo, Gordon & Co.

$67,400,000

$227.00

4Q18

Tampa City Center

The Shidler Group

Banyan Street Capital

$110,000,000

$145.23

3Q17

Fifth Third Center

Farley White Interests Bridge Investments

$52,500,000

$187.00

4Q16

Park Tower

Feldman Equities

Sterling Equities

$79,750,000

$168.75

Class A Leasing Activity and Absorption

Class A Direct Vacancy and Rental Rates

-200,000 -100,000 0 100,000 200,000 300,000 400,000 500,000

$10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00

10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

0.0% 2.0% 4.0% 6.0% 8.0%

$0.00 $5.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Class A Direct Gross Asking Rental Rate

Class A Direct Vacancy Rate

Leasing Activity

Direct Net Absorption

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tampa cbd Downtown Tampa offers an inspiring culture of museums, diverse cuisines and memorable dining experiences, world-class arts venues, lush city parks, and waterfront public spaces including our amazing Riverwalk. With an array of outdoor activities and frequent community events occurring throughout the year, Downtown Tampa has quickly become the hottest place to live in the southeast!

Companies are attracted to downtown Tampa as a result of its impressive urban setting, which inspires business excellence and drives success. Tampa itself is a magnet for the young and educated. According to U.S. Census data, Hillsborough County’s millennial population is growing 13 percent faster than the nation as a whole, which is no surprise because of Tampa’s ideal location, high quality of life and reasonable cost of living. Boasting 18 high-rise office buildings with 8.8 million square feet of business space, Downtown Tampa is the ideal location for any business. ( tampasdowntown.com)

Total Submarket Population: 9,990

Office Inventory (Class A): 3,903,388 SF

Hotel / Lodging: 11 Establishments

Residential: 8,014 Housing Units

Historic Tampa Theatre – Built in 1926 as one of America’s most elaborate movie theaters, the ornate Mediterranean-style structure has maintained its historic feel and offers a movie experience unlike any other! Recently ranked as the number three movie theater in the world.

Food / Beverages: 166 Establishments

Direct Avg. Rental Rate (Class A): $34.09

There’s a heavy focus on creating engaging experiences and storefronts, making the neighborhood a place where people want to be —whether they’re residents, local employees or Lightning fans coming to a game. That’s what’s going to make or break this neighborhood in terms of its success,” Vinik said on the overall walkability of the district. “We must be brilliant at that.” - Jeff Vinik, Tampa Bay Lightning owner and backer of a $3 billion real estate development in downtown Tampa (bizjournals.com)

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• Tampa Convention Center • The Riverwalk with restaurants and meeting spots such as Sail Pavilion, Ulele and Armature Works • Amalie Arena, home to NHL’s Tampa Bay Lightning and over 150 special events each year • David A. Straz Jr. Center for the Performing Arts • Tampa Bay Historic Center • Florida Aquarium • Glazer Children’s Museum • Tampa Museum of Art • Florida Museum of Photographic Arts • Henry B. Plant Museum TAMPA CBD

• University of Tampa • Sparkman Warf • Channelside Cruise Ship Port • Pirate Water Taxi • Teco Line Street Car System

• Numerous Gasparilla events, including the Pirate Invasion, Parade, Music Festival, Art Festival and International Film Festival • Parks & Recreations facilities including Curtis Hixon Park, Waterworks Park, Julia B Lane Park and Cotanchobee Fort Brooke Park

Food & Beverages Hotels & Lodging Arts & Entertainment Residential

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Gasparilla ARGH! Every winter, the legendary pirate Jose Gaspar and his buccaneers return to invade the City of Tampa. The Mayor is forced to surrender the Key to the City into the hands of the Captain of Ye Mystic Krewe of Gasparilla. The jolly Krewe launches their victory celebration in the Parade of the Pirates down Bayshore Boulevard, the 3rd largest parade in the U.S. The people of Tampa come together for an unforgettable pirate-themed celebration, including a music festival, children’s parade, 5K Marathon and much more.

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Total Business Population: 54,695

WATER STREET—TAMPA’S DOWNTOWN WATERFRONT DISTRICT SPP’S ESTIMATED $2 TO $3 BILLION MIXED USE DEVELOPMENT TO INCLUDE: • Office buildings totalling approximately 1.5 - 1.8M SF ranging from 15 - 30+ stories, 20,000 - 25,000 SF per floor • Additional 330,000 SF in medical office and research space with the USF Morsani College of Medicine and Heart Health Institute. Construction commenced in Q4 2017 • Sparkman Wharf, a mixed-used development with 180,000 SF of office, retail, and restaurants started construction on the office portion in later 2018 and is expected to deliver in 2020 • Over 2500 residential condominiums and apartments • Over 1.5M SF of neighbourhood and regional serving retail, cultural and entertainment uses • Existing 719-key Marriott Waterside hotel and future 5 Star JW Marriott with 650-keys and 70,00 sf of meeting space • Major roadway, state of the art master infrastructure and public space improvements • First WELL Certified District in the Country ( waterstreettampa.com )

Major Employers in Tampa CBD • Morgan & Morgan • Frontier Communications (former Verizon) • Deloitte • Teco Energy • Ernst & Young • Sykes Enterprises • SunTrust • PNC • Bank of America • Industrious

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HEIGHTS UNION • Two Office Buildings: 137,000 SF Available – West Building - Second half of 2020 Delivery – East Building - Second half of 2020 Delivery • The Pearl Apartments—314 Luxury Rental Units • Ground Level Retail—28,873 SF • Urban Inner City Development

- NOW UNDER CONSTRUCTION

Armature Works Heights Public Market

• The Heights Public Market (Armature Works)—73,000 SF open market that includes 14 walk-up food vendors, two chef-driven restaurants, a courtyard, a roof top bar and 11,000 SF event space • 2-Acre green space offering public boat slips, paddle boards, kayaks and other water-craft for rent • Access to Tampa’s Riverwalk, providing connectivity from The Heights to Downtown Tampa • Julian B. Lane Riverview Park ($35 million renovation): The 23-acre park sits just across the river from Tampa’s blossoming downtown.

Julian B. Lane Park

Cushman & Wakefield

MANOR RIVERWALK • Developer—Related Group

• First major development on the western bank of the Hillsborough River • Will include a free-standing parking garage, fitness center, and multiple courtyards • Located on the former Tampa Tribune office building site • 8-stories with 400 units. • Construction to be completed in early 2019

ENCORE! • Located in the heart of

Downtown Tampa and adjacent to the Central Business District, Ybor City, Channelside, Tampa Heights and Tampa East, ENCORE! is the vibrant, unifying mixed-use destination for commerce. • A 40+ acre mixed use redevelopment consisting of multifamily, retail, office and hotel. • The pedestrian-friendly plan blends commerce with community in a unique “city within a city” concept. A formal town square with pathways, a history museum, public artwork and relaxation niches is center stage to hotels, offices, apartments, retailers and restaurants. • Property Highlights—180,000 SF Office, 300+ Hotel Rooms, 1,500+ Residential Units, 50,000 SF of Retail.

CRESCENT RIVERWALK • Crescent Communities is completing 394 apartments at 109 W. Fortune St., which is on the former 5 acre surface parking lot next to the Barrymore Hotel, Tampa Riverwalk and The Tampa Bay Times office building. • The development is named Crescent Riverwalk and includes a mix of one-, two- and three-bedroom apartments. • It will provide parking for the adjacent office building via a parking deck on the site.

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Cushman & Wakefield

Tampa International Airport ranks fourth in the nation - Travel & Leisure Magazine

COUNT

Clea Exec

CLEARWATER DOWNTOWN

BAYSID

WESTSHORE welcome to

GATEWAY /

699

26 Cushman & Wakefield

TOLL 589

westshore submarket spotlight Q4 2019

581

597

ORTH ELLAS

Ehrlich Rd

301

593

TOLL 589

580

YSIDE

275

NORTHWEST

I-75 CORRIDOR

4 4

water Airport

Old Tampa Bay

Inventory 12,716,545 SF Direct Vacancy—Class A 10.80% Direct Asking Rent—Class A $37.54

WESTSHORE

Tampa International Airport

301

YBOR CITY

TOLL 618

275

Port Tampa Bay

St. Petersburg International Airport

HYDE PARK

TAMPA CBD

ID-PINELLAS

SOUTHWEST

MacDill AFB

SOUTH T. PETERSBURG

I-375

ST. PETERSBURG DOWNTOWN

Cushman & Wakefield

I-175

WESTSHORE SUBMARKET SPOTLIGHT

TAMPA'S PREEMINENT SUBMARKET WITH A VARIETY OF SPACE OPTIONS

CURRENT SITUATION

Major Leases Building

Tenant

Deal Type

Avion Park

Fanatics

91,980

New

MAJOR CURRENT AVAILABILITIES 30,000+ SF Spaces Class A • Avion Park 84,169 SF • Corporate Center I 31,601 SF—Bloomin Brands Sublease

LakePointe One

Fisher Investments

74,742

New

Meridian Three

Simply Healthcare

69,673

Renewal

Health Insurance Innovations

LakePointe One

31,043

New

MetWest III

PwC

167,000

New

Corporate Center IV Greenway Health

101,139

Renewal

Corporate Center I

Amgen

124,715

New

Major Sales Quarter Sold Building

Buyer

Seller

Price

Price PSF

4Q19

Westshore Corporate Center Parkway

Angelo, Gordon & Co.

$37,000,000

$213.00

4Q19

Cypress Center I, II, III

Parkway

Angelo, Gordon & Co.

$52,200,000

$182.00

1Q18

Urban Centre I & II

Starwood Capital

TIAA

$70,500,000

$261.16

Atlanta Property Company

2Q17

Tampa Commons

Starwood

$43,151,839

$169.35

2Q17

Orion Center

Dilweg Companies

Osprey

$9,500,000

$130.23

1Q17

Eisenhower I

Gramercy Property Trust TIER REIT

$31,400,000

$241.54

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Class A Direct Vacancy and Rental Rates

25.0%

$10.00 $15.00 $20.00 $25.00 $30.00 $35.00

20.0%

15.0%

10.0%

5.0%

$0.00 $5.00

0.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Class ADirect Gross Asking Rental Rate

Class A Direct Vacancy Rate

Class A Overall Leasing Activity and Absorption

2,000,000

1,500,000

1,000,000

500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-500,000

-1,000,000

Leasing Activity

Direct Net Absorption

METWEST THREE • This will be the fourth office building in the MetWest International project bringing the total to 1 Million square feet. MetWest International is 99% leased.

• 250,000 RSF building • 100% pre-leased to PwC • Delivered in November 2019

Cushman & Wakefield

westshore Tampa’s Westshore district is the center of activity not only in the Tampa Bay region, but also on Florida’s west coast. Located at the intersection of several major highways and an interstate, it’s easy to see how it has become Florida’s largest office community comprised of 4,000 businesses with nearly 94,000 employees. But it doesn’t stop there, Westshore has evolved – it’s not just 9 to 5 anymore. The Westshore district is now home to a vibrant 24/7 community and boasts some of Tampa’s finest restaurants, world- class shopping, extraordinary hotels and vibrant residential neighborhoods. And if that wasn’t enough, the award-winning Tampa International Airport is just minutes away. Tampa has invested heavily in doubling the capacity of all three major bridges connecting Hillsborough and Pinellas Counties, providing seamless access between the two counties with Westshore being the heart of all the connectivity. The phrase “location, location, location” rings true in Westshore. ( choosewestshore.com )

Total Submarket Population: 69,333

Office Inventory (Class A): 7,116,587 SF

Hotel / Lodging: 41 Establishments

Residential: 31,901 Housing Units

Food / Beverages: 312 Establishments

Direct Avg. Rental Rate (Class A): $37.54

“Westshore has more of a business oriented feel, a lot of transplants, easier to meet people. It has the best mall in the area and a lot of upscale trendy restaurants which makes for a great afternoon-evening social scene. I am a 27 yr old single professional and I live inWestshore, it is a good fit for me. I can get off work and go to happy hour solo, or meet friends, and mingle with other like minded, active young professionals.” - Craig M., (city-data.com)

30 Cushman & Wakefield

Total Business Population: 105,575

Major Employers in Westshore • New York Life Insurance • PricewaterhouseCoopers (PwC)

• Capital One • Chase Bank • Amgen • Bloomin’ Brands (Outback Steakhouse HQ) • Bristol-Meyers Squibb

Food & Beverages Hotels & Lodging Arts & Entertainment Residential WESTSHORE

• Superior transportation infrastructure—3 major highways pass through Westshore and there are two HART public transit centers in Westshore • 30-minute drive to 75% of Tampa Bay area residential neighborhoods • Top-rated Tampa International Airport is located within 5 to 7 minutes from any Westshore Business District location • Upscale shopping including 2 regional malls WestShore Plaza & International Plaza and Bay Street • Westshore is the center of the region's hospitality industry with over 40 hotels and more than 312 restaurants • 10-minute drive to the Tampa CBD and Tampa's Convention Center • Full service 24-hour post office located at Tampa International Airport • Raymond James Stadium, home of NFL’s Tampa Bay Buccaneers and George M. Steinbrenner Field, home to MLB’s New York Yankees spring training facility

Cushman & Wakefield

TAMPA INTERNATIONAL AIRPORT EXPANSION • $1 billion expansion project • Phase 1 of the TIA expansion, completed, addresses immediate needs to de- congest the curbsides, roads and Main Terminal • 2.6 million-square-foot consolidated rental car facility

• 1.4 mile automated people mover • Expansion of the Main Terminal • The expansion is expected to create 1,000 more permanent jobs at the airport by 2018

TIA is the only airport in Florida with a working brewery on site.

32 Cushman & Wakefield

MIDTOWN TAMPA • On 23 Acres in Westshore, Midtown Tampa is the first mixed-use project of its kind in Tampa • This $500M project will deliver 1.8 million SF of retail, residential, office, entertainment and hospitality • Office – 750,000 SF – Midtown One ±152,000 RSF and 8 stories, 22,200 RSF typical floor plate, covered bridge to parking, Est. Delivery: Q2 2021 – Midtown Two ±200,000 RSF Est. Delivery Q3/4 2021 – Midtown Three ±400,000 RSF, adjacent parking garage, Est. Delivery: Q1 2022 – The Loft at Midtown ±70,000 RSF Est. Delivery: Q1 2021 • Whole Foods Market will be taking 48,000 SF and opening in Q1 2021. They will employ approximately 200 full and part-time employees

Cushman & Wakefield

Ybor City remained the Cigar Capitol of the World until the 1930s

YBOR CITY welcome to

In 2008, 7th Avenue, was recognized as one of the “10 Great Streets in America” by the American Planning Association

34 Cushman & Wakefield

ybor city is known as Tampa’s National Historic Landmark District. In the 1880s Ybor City was a melting pot of immigrants from Spain, Cuba, Germany and Italy and home to some of the world’s most famous cigar factories. Today, several structures in the historic district are listed in the National Register of Historic Places. Evoking the history of Ybor City, the classic brick streets and historic facades blend

into a distinct sense of culture that enlivens your environment while preserving a rich history of diversity, community and industry.

While it respects its history, Ybor is all about looking forward. There is so much more to explore in Ybor—a lively nightlife, a thriving influx of growing small businesses, eclectic retail stores, a growing number of new residential units and an abundance of diverse and locally-owned restaurants and eateries.

More than a century later and Ybor City continues to be the dynamic, energetic melting pot of Tampa Bay. ( yborcityonline.com )

Office Inventory: 170,148 SF

Total Submarket Population: 3,218

Hotel / Lodging: 2 Establishments

Residential: 1,426 Housing Units

Food / Beverages: 17 Establishments

Direct Ave Rental Rate: N/A

“This is a time of strong growth for Ashley Furniture, and we’re proud to partner with the city of Tampa, Hillsborough County and the Ybor City business community to build our future in this exciting and historic location.” –ToddWanek, president and CEO of Ashley Furniture Industries

Cushman & Wakefield

“...because it is ‘where millennials want to be,’” Why Ybor City over San Francisco and New York City?

- Todd Wanek, president and CEO of Ashley Furniture Industries

36 Cushman & Wakefield

Food & Beverages Hotels & Lodging Arts & Entertainment Residential

YBOR CITY Masonite

• The Ritz Ybor performance venue • Ybor City Museum • The Historic Columbia Restaurant • Cigar Industry Historic Tours • Tampa Bay Brewing Company • Cigar City Cider & Mead • Centro Ybor Shopping Center • Tampa Bay Brew Bus • Vibrant nightclub scene, including Prana, the Orpheum, Empire & Crowbar

Total Business Population: 11,138

Major Employers in Ybor City • Kforce • Kitedesk • Ashcomm* (Ashley Furniture Industries: E-Commerce HQ) • Masonite

Cushman & Wakefield

University Way Precedent Images - billion-dollar redevelopment of shopping mall

COUNT

Clea Exec

CLEARWATER DOWNTOWN

BAYSID

I-75 CORRIDOR welcome to the

GATEWAY /

699

38 Cushman & Wakefield

TOLL 589

i-75 submarket spotlight Q4 2019

581

597

ORTH ELLAS

Ehrlich Rd

301

593

TOLL 589

580

YSIDE

275

NORTHWEST

I-75 CORRIDOR

4 4

Inventory 7,171,055 SF Direct Vacancy—Class A 10.7% Direct Asking Rent—Class A $25.44

water Airport

Old Tampa Bay

WESTSHORE

Tampa International Airport

301

YBOR CITY

TOLL 618

275

Port Tampa Bay

St. Petersburg International Airport

HYDE PARK

TAMPA CBD

ID-PINELLAS

SOUTHWEST

MacDill AFB

SOUTH T. PETERSBURG

I-375

ST. PETERSBURG DOWNTOWN

Cushman & Wakefield

I-175

THE I-75 CORRIDOR IS A KEY MARKET FOR CAMPUS-STYLE CORPORATE ENVIRONMENT

CURRENT SITUATION

Major Leases Building

Tenant

Deal Type

Eastpointe I

Pharmerica

36,002

Renewal

Sabal Corporate Center Herzing University

33,937

New

Highland Oaks II

Airline Reporting Corporation

17,592

New

LakeView at Hidden River LakeView at Hidden River

16,905

Renewal

15,985

Renewal

Major Sales Quarter Sold Building

Buyer

Seller

Price

Price PSF

2Q17

Tampa Oaks One

The Dilweg Company Osprey Management Company

$20,150,000

$122.31

2Q17

Lakeview @ Hidden River The Dilweg Company Osprey Management Company

$17,750,000

$141.33

Class A Leasing Activity and Absorption

Class A Direct Vacancy and Rental Rates

-300,000 -200,000 -100,000 0 100,000 200,000 300,000 400,000 500,000 600,000

$10.00 $15.00 $20.00 $25.00 $30.00

25.0%

20.0%

15.0%

10.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

5.0%

$0.00 $5.00

0.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Leasing Activity

Direct Net Absorption

Direct Gross Asking Rental Rate

Direct Vacancy Rate

40 Cushman & Wakefield

i-75 corridor Hillsborough County’s I-75 corridor is widely regarded as one of the most prestigious office submarkets in Tampa Bay. The submarket is located in the eastern portion of the County with superior access to Tampa Bay’s major roadways, such as the Selmon Crosstown Expressway, Interstates 75, 275 and 4, US Highway 301, and State Road 60. The submarket’s accessibility and affordability has attracted high profile companies such as Johnson & Johnson, Chase, CitiCorp, Progressive Energy, Coca-Cola, Spectrum, and USAA, which all have large operation centers in the submarket. One reason the area is attractive is because it provides a cost- effective alternative to Tampa’s CBD and Westshore submarkets. It also has significant land that allows for secure multi-building campus style office parks. Its strategic location provides a bridge to the I-4 Corridor and major markets in Central Florida. In late 2017, USAA announced plans to expand upon their existing I-75 Corridor location. The expansion will net a new 240,000 sf office building, create up to 1,215 new jobs, and $164.3 million in capital investment by 2019. The original 420,000 sq. ft. office building served its purpose well, but according to USAA officials the new expansion is part of the “financial services provider’s strategy to meet the evolving needs of its growing membership by attracting the best people in talent-rich regions like Tampa.”

Total Submarket Population: 66,764

Office Inventory (Class A): 3,541,884 SF

Hotel / Lodging: 106 Establishments

Residential: 242,763 Households

Food / Beverages: 1,010 Establishments

Direct Ave Rental Rate (Class A): $25.44

“Tampa has been a great market for us, and we are thrilled to be expanding our presence in the region.” -Yvette Segura, USAA vice president and general manager in Tampa

Cushman & Wakefield

Total Business Population: 231,173

Major Employers in the I-75 Corridor • Syniverse • MetLife • USAA • Depository Trust Clearing Corp. • Johnson & Johnson • CitiCorp

Food & Beverages Hotels & Lodging Arts & Entertainment Residential I-75 CORRIDOR Retail has experienced a resurgence in recent years and focused around University Square Mall, the 1.3 msf regional mall with over 160 stores built in 1974. In 2014, RD Management purchased the mall for $29.5 million and recently announced that they will be unveiling a billion-dollar redevelopment plan for the property. Besides benefitting USF and its students, the mall is also located adjacent to one of the country’s leading health institutions, the H. Lee Moffit Cancer Center & Research. The Moffit Cancer Center is located on the USF campus, and includes a hospital clinic, and research facilities. It is consistently ranked as one of the top cancer research facilities in the country and is the only National Cancer Institute-designated Comprehensive Cancer Center based in Florida. The Center has multiple locations in Hillsborough County including an outpatient facility near the Tampa International Airport, a screening center in north Tampa, and an Outpatient Center on McKinley Drive. The system also recently purchased a 300,000 sf industrial building directly across the street from their Outpatient Center.

42 Cushman & Wakefield

NUMBER OF STUDENTS 51,000 MAIN CAMPUS STUDENTS 43,500 ENROLLMENT INCREASED 18% since 2012-2013 academic year University of South Florida 4202 E Fowler Ave, Tampa, FL 33620 STUDENT HOUSING DELIVERED • 2,200 units since 2012 within 2 miles of the university

60% were delivered in 2017 alone

•

USF is a top public research institution, the largest public university in the Tampa Bay MSA and the 9th largest university in the nation. The three-campus system is home to a student body of nearly 51,000 students, with over 43,500 students attending classes at the main campus. Since the 2012-2013 academic year, enrollment has increased at the main campus by 18%. Student housing and multifamily developers have jumped at the chance to serve the growing student body at USF by delivering over 2,200 units since 2012 within 2 miles of the university. Approximate 60% of all units, or 1,315, were delivered in 2017 alone, including The Village I and II, Haven 46, and The Retreat at Tampa. USF recently announced it is expanding a public-private partnership to help graduates get specialized training for careers in software engineering. It is a skills initiative between USF and Revature with the main focus being to grow a tech-savvy workforce. Corporations looking to hire employees with coding skills pay Revature to provide the technical training and people skills. Creative Chief Marketing officer Joe Vacca said, and the benefits of the expansion won’t end with the graduates and their new employers. "It will attract new companies to the region," he said, "by providing something that is truly rare in this country: a predictable access to technology talent." ( usf.edu )

Cushman & Wakefield

#2 Most Beautiful City in the USA - The Culture Trip, 2015

ST. PETERSBURG S welcome to

#1 Best City for Millennial Job Seekers - NerdWallet, 2015

44 Cushman & Wakefield

st. petersburg St. Pete is affectionately known as the Sunshine City because of its vibrant waterfront neighborhoods for those seeking a walkable, bikeable energetic city life with small town charm. St. Pete is in the midst of a creative and business renaissance, blending the historic with the modern, and the artsy with a corporate atmosphere. St. Pete is the perfect place to live, work and play. If you are looking for a city with a bustling downtown, serene waterfront views and delicious dining options, choose the Sunshine City. ( discoverdowntown.com )

Office Inventory: 2,038,302 SF

Total Submarket Population: 8,060

Hotel / Lodging: 25 Establishments

Residential: 6,779 Housing Units

Food / Beverages: 101 Establishments

Direct Average Rental Rate: $31.97

“St. Pete should be recognized as a tech hub. There’s more tech and innovation here than people recognize and we’re proud to be one of the companies being highlighted.” - Milind Bharvirkar, CEO of Priatek (stpete.org)

Cushman & Wakefield

Food & Beverages Hotels & Lodging Arts & Entertainment Residential

ST. PETERSBURG

• The Coliseum Ballroom and Event • Jannus Live, World-Famous Live Music Venue and St. Pete Landmark • Chihuly Collection and Morean Arts Center • Salvador Dali Museum • The James Museum of Western and Wildlife Art • St. Petersburg Marina - The largest marina in the state with more than 600 rental boat slips • Albert Whitted Airport

• Tropicana Field, home to Major League Baseball’s Tampa Bay Rays • Mahaffey Theater / Duke Energy Center for the Arts and Concert Hall • Tampa Bay Rowdies, professional soccer team • Firestone Grand Prix Indie Car Series • The New St. Pete Pier, the city’s newest waterfront park • Beach Drive, home to unique local shops, delicious dining options for every taste and fun bars • Sunken Gardens, botanical gardens

46 Cushman & Wakefield

Major Employers in St. Petersburg

• Tampa Bay Times • iQor* (Global HQ) • Kobie Marketing • Duke Energy

• Enstar • Morgan Stanley • UBS • Community Health Systems

Total Business Population: 16,406

BuzzFeed asked its readers to weigh in on the most underrated city in the United States, and St. Petersburg received a lot of love, ranking No. 6. One Facebook commenter had this to say: “This city absolutely has all the chill you could ask for. Close to all of the tourist fun without being touristy, it has a booming arts district, beautiful beaches and parks, incredible bars and restaurants, and a generally cool vibe.”

Cushman & Wakefield

GATEWAY welcome to 48 Cushman & Wakefield

597

NORTH PINELLAS

Ehrlich Rd

301

4 4 gateway submarket spotlight Q4 2019 301 60 580 92 41 4 75 I-75 CORRIDOR YBOR CITY Port Tampa Bay

593

TOLL 589

COUNTRYSIDE

275

NORTHWEST

Clearwater Exec. Airport

Old Tampa Bay

WESTSHORE

Tampa International Airport

CLEARWATER DOWNTOWN

TOLL 618

275

BAYSIDE

St. Petersburg International Airport

HYDE PARK

TAMPA CBD

GATEWAY / MID-PINELLAS

Inventory 4,527,426 SF Direct Vacancy—Class A 9.60% Direct Asking Rent—Class A $26.22

SOUTHWEST

MacDill AFB

699

SOUTH ST. PETERSBURG

I-375

ST. PETERSBURG DOWNTOWN

I-175

Port of St. Petersburg

Tampa Bay

674

Cushman & Wakefield

THERE ARE NO EXISTING 100,000 SF BLOCKS OF VACANT SPACE IN THE MARKET

CURRENT SITUATION

Class A Direct Vacancy and Rental Rates

$10.00 $15.00 $20.00 $25.00 $30.00

25.0%

Major Leases Building

20.0%

Tenant

Deal Type

15.0%

Pasco Building-Baypoint Commerce Center United Healthcare

19,311

Renewal

10.0%

570 Carillon

Price My Ride

56,000

New

5.0%

$0.00 $5.00

Arrow Point Plaza

Galen College of Nursing

70,000

New

0.0%

Bay Vista Pavilion

Emcare

93,069

New

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3

Roosevelt Corporate Center III

Bankers Financial Corporation

111,357

Renewal

Direct Net Asking Rental Rate

Direct Vacancy Rate

Class A Direct Vacancy and Rental Rates

Class A Leasing Activity and Absorption

$10.00 $15.00 $20.00 $25.00 $30.00

25.0%

400,000

20.0%

300,000

15.0%

200,000

10.0%

100,000

5.0%

$0.00 $5.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3

0.0%

-100,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3

-200,000

Direct Net Asking Rental Rate

Direct Vacancy Rate

Leasing Activity

Direct Net Absorption

Class A Leasing Activity and Absorption

50 Cushman & Wakefield

400,000

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