Five factors influencing the future of coworking in Tampa Bay
In about a decade, Tampa's coworking inventory has more than tripled
Five factors influencing the future of coworking in Tampa Bay
Tampa Bay’s surging commercial real estate market is embracing the coworking groundswell. The percentage of Tampa Bay’s total coworking inventory has more than tripled in the last decade. As the nature of work continues evolving in favor of flexible and remote jobs, the area is still ripe for future coworking growth. See the five factors we’re tracking to help you stay on top of the movement.
Downtown Tampa now holds the lion’s share of new entrants
Coworking providers have long embraced suburbia, with its significantly lower rents for Class A office space. But for the first time last year, Tampa Bay’s CBD edged out the suburbs in total square footage leased for coworking, and that trend looks like it will continue over the next three years. This has largely been driven by new entrants almost exclusively looking to the CBD and taking advantage of the historically low vacancy rate that we are currently seeing for class A office product.
2. The courtship continues
The percentage of total coworking inventory has more than tripled in the last decade. As landlords increasingly look to fill vacancies, they are cozying up to coworking providers. Look for these desirable tenants to continue playing a starring role in the office market.
3. Local players are holding their own
Two of the largest national players, WeWork and Regus, have also established market leading positions locally, but a plurality of providers in Tampa is staving off a monopoly—for now. Of Tampa’s 41 coworking locations, 28 unique providers are at the helm. New-to-market national players delivered 35 percent of coworking locations that opened in the past 18 months, but local shops still account for 30 percent of the market. As large operators are snatching up prime locations, a diverse array of tenants may find a competitive edge by focusing on smaller spaces with lucrative subscription models.
4. Battleground state
From 2018 through Q1 2019, Tampa welcomed six unique coworking providers to the market, with the lessees having acquired 222,483 square feet. That’s more than 35 percent of the total coworking space leased to date. Regus and WeWork are finding themselves in a familiar battle for the largest provider in the market, with WeWork making a big splash this year. Check out the top five tenants and how they stack up against the competition.
5. (Sub)urban sprawl?
Today’s workforce is no longer easily classified as urban or suburban. Depending on where clients and employees (with families) live, corporations are increasingly operating downtown headquarters and suburban satellite sites simultaneously (or vice versa). This business approach that supports employees moving freely across locations is poised to diversify where coworking providers will locate in the future. See which of Tampa Bay’s submarkets are gaining interest.
