SunTrust tower in downtown Tampa on the market
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: May 4, 2015

Another one of Tampa's signature skyline towers is for sale.

The 36-story SunTrust Financial Centre is being marketed for sale as part of a large portfolio of office buildings, according to real estate sources, who asked not to be named because of the sensitivity of the deal. The owner, Atlanta-based Brookdale Group, paid $82.5 million for the tower in late 2011. Brokers from the HFF LP Miami office are marketing the property, sources said.

Representatives from HFF and Brookdale did not return requests for comment Monday.

The tower, which is 89 percent occupied, commands some of the highest office rents in the urban core, between $28 and $30 per square foot, according to data from JLL. An illuminated ziggurat tops the building, changing colors to recognize local sports teams and events.

If a deal comes to fruition, it will be the latest in a flurry of office tower sales in downtown Tampa. Fifth Third Center, the Wells Fargo Center and Tampa City Center sold in 2014. Rivergate Tower sold in 2014 as part of a large portfolio, and is now for sale again.

The office tower sales are a good sign for Tampa - it means that investors see upside potential. While none of the towers that have sold have sold for more than replacement cost, the sales are good for the overall market, because new owners tend to invest capital in the buildings and raise rents.

Higher rents are necessary to drive new office development. It's been more than 20 years since a new office tower was built in downtown Tampa, and that can be a hindrance to economic development.

Companies considering a relocation are often looking for top-tier, modern office space - and are increasingly looking for that kind of space in an urban environment.

Right now, companies need a large block of modern space don't have an option in downtown Tampa, unless they're willing to wait for new construction. Tampa Bay Lightning owner Jeff Vinik is considering a speculative office building on the land he owns between Amalie Arena and the central business district.

Ashley Gurbal Kritzer is a reporter for the Tampa Bay Business Journal.