Office Property Sales & Trends | May – June 2020
Historical report: May–June 2020 sales and August 2020 commentary. Sales figures cover Hillsborough County. Workplace observations reflect the outlook expressed when this post was published in August 2020, rather than current market conditions or forecasts.
Hillsborough County Office Sales: June 2020
Reported office property sales totaled $17,739,000 across 12 transactions in June 2020, compared with $66,800,100 across 13 transactions in June 2019.
Reported sales volume declined approximately 73.4% year over year. The reported average sale price per square foot declined 59.4%, from $528.58 to $214.75.
The largest June transaction accounted for approximately 58% of the month’s reported dollar volume, illustrating the influence of individual sales on monthly totals.
Year-over-Year Sales Comparison
| Metric | June 2019 | June 2020 |
|---|---|---|
| Transactions | 13 | 12 |
| Total Sales Volume | $66,800,100 | $17,739,000 |
| Reported Average Sale Price per SF | $528.58 | $214.75 |
| Highest Sale Price | $52,050,000 | $10,350,000 |
Largest Reported Office Sale
The largest transaction was the professional office property at 3350 Buschwood Park Drive in Tampa, which sold for $10,350,000.
- Year built: 1989
- Reported building area: 78,446 square feet
- Land area: 7.6 acres
- Reported sale price per square foot: $131.94
The other 11 transactions totaled $7,389,000.
June 2020 Office Sales Transactions
The table below reproduces the transactions listed in the original report. Prices per square foot follow the original figures.
On smaller screens, scroll the table sideways to see all columns.
| Address | City | Building SF | Sale Price | $/SF |
|---|---|---|---|---|
| 2919 W. Swann Ave., Unit 400B | Tampa | 1,359 | $275,000 | $202.35 |
| 4202 N. Habana Ave. | Tampa | 3,180 | $802,000 | $252.20 |
| 3203 Lithia Pinecrest Rd. | Valrico | 3,696 | $750,000 | $202.92 |
| 4904 W. Cypress St. | Tampa | 5,207 | $1,500,000 | $288.07 |
| 1490 E. Martin Luther King Blvd. | Seffner | 7,382 | $285,000 | $38.61 |
| 6996 Anderson Rd. | Tampa | 3,999 | $1,200,000 | $300.08 |
| 7113 Causeway Blvd. | Tampa | 1,470 | $310,000 | $210.88 |
| 1375 Providence Rd. | Brandon | 3,036 | $585,000 | $192.69 |
| 13061 W. Linebaugh Ave. | Tampa | 3,000 | $542,000 | $180.67 |
| 6967 E. Fowler Ave. | Temple Terrace | 1,250 | $265,000 | $212.00 |
| 3350 Buschwood Park Dr. | Tampa | 78,446 | $10,350,000 | $131.94 |
| 1717 E. 5th Ave. | Tampa | 2,400 | $875,000 | $364.58 |
| Total Reported Sales Volume | $17,739,000 | |||
Medical Office Sales
Two of June’s 12 reported transactions were identified as medical office sales:
- 4202 N. Habana Avenue, Tampa: $802,000, or $252.20 per square foot.
- 3203 Lithia Pinecrest Road, Valrico: $750,000, or $202.92 per square foot.
May 2020 Sales Comparison
May 2020 recorded eight transactions totaling $21,942,000, compared with 11 transactions totaling $6,661,500 in May 2019. Reported dollar volume increased approximately 229%.
The original commentary identified May as the first month of year-over-year sales-volume growth since the public health crisis began in mid-March. Despite the increase in volume, the reported average sale price per square foot declined approximately 30%, from $204.54 to $143.28.
| Metric | May 2019 | May 2020 |
|---|---|---|
| Transactions | 11 | 8 |
| Total Sales Volume | $6,661,500 | $21,942,000 |
| Reported Average Sale Price per SF | $204.54 | $143.28 |
| Highest Sale Price | $1,750,000 | $16,000,000 |
The Workplace Outlook in August 2020
The original post also considered how companies might change their office strategies during the pandemic. It cited Pinterest’s announcement that it would terminate a 490,000-square-foot San Francisco lease in exchange for a one-time payment of $89.5 million.
At the time, John viewed that decision as a possible indication of a longer-term change in workplace strategy and expected other companies to reconsider large, single-tenant office commitments.
Workplace Models Discussed at the Time
- Remote work: employees continuing to work from home for some or all of their schedules.
- Hub-and-spoke offices: a central headquarters supported by smaller satellite offices closer to employees’ homes.
- Shorter lease commitments: companies seeking flexibility to adjust their space needs.
- Flexible space: arrangements intended to accommodate changing attendance and workplace requirements.
The original outlook anticipated opportunities for multiple businesses to occupy space previously leased to one company, discounted opportunities in central business districts, and potentially greater demand for suburban offices.
Those statements were forward-looking opinions expressed in August 2020. They are preserved here as historical commentary rather than presented as current forecasts or confirmed outcomes.
Using Sales Comps to Evaluate Your Property
May and June illustrate how total transaction volume and average price per square foot can move differently. Large individual sales and changes in the mix of properties sold can substantially affect monthly comparisons.
Relevant comparisons account for location, building size and condition, land area, occupancy, lease terms, and the circumstances of each sale. A countywide average should not be applied directly to an individual office or medical office property.
Source: Hillsborough County Property Appraiser records, compiled by John Milsaps for the original May–June 2020 sales report. Figures reflect transactions recorded when the report was prepared and may differ from later compilations. The June transaction count follows the summary and 12-property table, correcting the original narrative’s reference to 10 transactions. Workplace observations reflect the accompanying August 2020 commentary.
Discuss Your Office Property’s Value
Considering selling an office or medical office property in Hillsborough, Pinellas, or Pasco County? Contact John Milsaps to discuss relevant sales and your property’s position in the market.