Quick take: Leasing demand is looking bright for quality real estate

April 19, 2023

While many brokers are reporting a sharp decline in leasing activity, our team is experiencing a healthy volume of activity. This is a real-world example of the growing divide between commodity office buildings and best-in-class properties. With the bulk of our portfolio square footage comprising high-quality buildings in desirable locations, we represent in-demand product.

Here are the metrics on activity in our portfolio:

• Compared to Q1 2022, tours are down 7%
• Proposals are up 5%
• Leases out up 38%
• Leases signed down 7%

However, we need to acknowledge that Q1 2022 was a uniquely strong quarter. After a long pause from COVID-driven uncertainty, the economy suggested growth and tenants were ready to move forward with leasing.

So, let’s compare Q1 2023 to Q1 2020 (the last quarter before COVID):

• Tours are up 15% from Q1 2020
• Proposals up 54%
• Leases out up 200%
• Leased signed up 56%?

Why do these numbers look substantially better? Because current leasing activity is dominated by employers willing to spend more on their real estate to attract talent and lure the workforce back into the physical office environment. Owners with the right product are seeing a good amount of activity.?

View JLL Tampa Bay Office Insight/Stats | Q1 2023

If you would like to discuss what is needed to qualify as a high-demand asset in Tampa Bay, we welcome your call or email!

James Moler, CCIM,?Executive Vice President

Jones Lang LaSalle Brokerage, Inc.

[email protected]?

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