On the precipice of a major vacancy, downtown Tampa office tower wins two new tenants
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Sep 1, 2015

The office tower at 501 E. Kennedy Blvd. in downtown Tampa has recently scored two new tenants.

The Anvil Group, which offers security services risk management and security services for international business travelers, will move into about 8,000 square feet next week, said Mercedes Angell, a senior director of office brokerage services with Cushman & Wakefield of Florida Inc.

Mary Clare Codd, a director with Colliers International Tampa Bay, represented Anvil in the transaction. The company was previously located off Eisenhower Boulevard South, on the fringes of Westshore.

The Tampa office of Workscapes Inc. will relocate to the storefront space on the corner of East Kennedy Boulevard and South Morgan Street in January 2016, Angell said. Workscapes, a Herman Miller office furniture certified dealer, is currently located in Brandon.

Jason Donald, a director with Cushman & Wakefield, represented Workscapes in the transaction.

Orlando-based Workscapes entered Tampa when it purchased four furniture dealerships owned by Herman Miller Inc. in 2013. While some of the dealerships Workscapes acquired were in suburban locations, the company prefers highly visible spaces, co-owner Elizabeth Dvorak has said.

The bright, modern office and showroom in one of the building's storefronts will be key in landing the building's next big win, Angell said, as it will showcase the type of buildout that's possible and increase curb appeal. In April 2016, law firm Buchanan Ingersoll & Rooney will vacate the building - along with the two companies that are subleasing space from the law firm, leaving a total of 100,000 square feet available, on floors 10, 14, 17, 18 and 19.

Buchanan Ingersoll & Rooney acquired Fowler White Boggs in 2014 and will consolidate in the SunTrust Financial Centre. When its consolidation was reported in late 2014, the subleases were not disclosed.

With the current vacancy, the building will have a total of 140,000 square feet available. That's a scary number, but there's perhaps never been a better time to have that kind of vacancy. Demand for office space in downtown Tampa is at an all-time high, and there are few big blocks of space. Until the former Fowler White Boggs move-out, Rivergate Tower was the only building with 100,000 square feet of vacancy.

"We have a lot of activity at the building," Angell said. "I think what tenants are looking for is a modern space, lots of amenities for their employees - both boomers and millennials - and they're looking for it at a value."

IP Capital Partners, which owns 501 E. Kennedy, is able to offer those things at a value because they "bought smart," Angell said. In February 2014, Boca Raton-based IP Capital Partners bought out their financial partners and took out a new loan on the building. The group has since spent around $2 million on upgrades to the building's common areas, including a fitness center.