As a seasoned commercial real estate broker, I’ve had the privilege of witnessing the dynamic changes in the Tampa Bay area, especially in Hillsborough County.
In this post, I want to share with you a topline analysis of the 2023 office building sales data, focusing on Hillsborough County’s key cities like Brandon, Tampa, Riverview, Valrico, Odessa, and others. I hope this post helps you understand what happened in the Hillsborough County office market in 2023.
Understanding the 2023 Office Building Sales in Hillsborough County
In 2023, the office building market in Hillsborough County recorded 146 transactions. Here’s a breakdown of what the numbers mean:
- Average Sale Price: The mean sale price of office buildings in Tampa stood at approximately $2,335,002. This figure is skewed by several high-value transactions that took place throughout the year.
- Sale Price Variance: A notable standard deviation of about $5,408,953 indicates a diverse range of sale prices, reflecting the market’s dynamic nature as it attempts to stabilize in the wake of the pandemic.
- Median Sale Price: At $750,000, the median sale price for the Tampa office market provides a more realistic market snapshot than the average, considering the broad price range.
- Price Range: Tampa office sales ranged from $108,900 to a staggering $40,000,000.
This data underscores a market with diverse opportunities, catering to various scales of office building owners. Whether you own a small office in Brandon or a larger complex in Tampa, understanding the area’s underlying trends and opportunities and how they will impact your investment is essential.
Trends and Patterns: Looking Beyond the Market Snapshot
An analysis of the data should incorporate more than just a market snapshot. It’s essential to look beyond the static sales data to get a comprehensive picture not only of what occurred in a previous period but what trends are evolving and opportunities emerging.
- Price Trends Over Time: 2023 saw fluctuating office building prices, reflecting the evolving economic landscape in Hillsborough County. Investors and owners will want to consider if prices are increasing, decreasing, or staying the same. Staying abreast of these trends will allow you to more favorably time the sale or acquisition of your holdings.
- Property Characteristics: The types of buildings sold, their sizes, and the years they were built provide insight into buyer preferences. For instance, modern, energy-efficient buildings in Tampa might be attracting higher prices than older structures. Consider your property’s key characteristics and consider the following:
- How much are similar properties selling for?
- Who is buying properties with similar characteristics?
- How much are properties with similar characteristics leasing for?
- Geographical Trends: The location of your property plays a significant role. Office buildings in central business districts like downtown Tampa may command higher prices compared to those in more suburban areas like Odessa, or vice versa. Consult with a broker who is knowledgeable in both the geographic area as well as your specific asset class to uncover trends that may impact the sales price or lease rate of your property.
- Market Trends: Staying informed of market trends is critical to maximize your sales price. For example, office to multifamily conversions are providing office property owners with new opportunities in areas where office use has stalled.
What Does This Mean for You as a Seller?
If you’re considering selling your office building in Hillsborough County, here’s how you can leverage this information:
- Price Your Property Competitively: Understanding the median and average prices helps in setting a competitive yet profitable asking price. As a commercial real estate broker specializing in professional and medical office sales, I recommend working with a reputable broker that can provide a broker opinion of value as well as market your property so that you can obtain the highest possible sales price for your asset.
- Timing is Key: Analyze your market’s price trends to determine the most opportune time to list your property for sale.
- Highlight Desirable Features: Emphasize features that align with current buyer preferences, such as location, building amenities, and sustainability. In addition, keep in mind changing needs that have emerged in the last couple of years. Slight updates to your building could have a considerable impact on the marketability and competitiveness of your property.
Navigating the Hillsborough County Market
The Hillsborough County commercial real estate market is as diverse as it is dynamic. Whether your property is in a bustling area like Tampa or a quieter suburb like Valrico, understanding these trends is crucial. Here are some tips:
- For properties in urban areas (e.g. Tampa, Brandon): Emphasize accessibility, proximity to business hubs, and modern amenities.
- For suburban properties (Riverview, Odessa): Highlight the serene environment, spacious layouts, and potential for customization.
Final Thoughts for Prospective Professional & Office Property Sellers
Selling an office building in Hillsborough County is a significant decision. With the 2023 market data in hand, you’re better equipped to understand the landscape and position your property effectively. Remember, each property is unique, and its value is influenced by a myriad of factors, from location to amenities.
If you’re ready to take the next step in selling your office property in Hillsborough County, or if you just need more guidance, feel free to reach out. My expertise in the Tampa Bay area’s commercial real estate market can help you navigate these complexities and achieve a successful sale.