Latest downtown Tampa office tower to hit the market has potential to be a record setter
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Sep 22, 2015

Yet another of downtown Tampa's office towers is up for sale.

A team of brokers from CBRE Group Inc. (NYSE: CBG), including senior vice presidents Christian Lee in Miami and Dale Peterson in Tampa, have the exclusive listing for the tower, according to marketing materials obtained by the Tampa Bay Business Journal.

A CBRE spokesman declined comment Tuesday.

The 42-story, 787,042-square-foot tower is considered one of the best, if not the best, in Tampa's urban core. It is owned by MetLife Real Estate Investments.

It is 89 percent occupied by 76 tenants, according to the marketing materials. Major tenants include Bank of America, Allstate Insurance, CBRE and Lockheed Martin.

The top two floors are occupied by the Tampa Club, a private dining and events facility. A dentist office, hair salon and fitness center are tenants in the building.

Between the dynamics of the downtown Tampa office market and the tower's stature within the skyline, its sale could fetch a record-setting figure. Office rents in the urban core are on the rise, and with the building's location and amenities package, investors could see a lot of upside in the tower with potential for significant rent hikes.

Office rents in top-tier buildings in downtown Tampa rose 6 percent in the last 12 months, according to the marketing materials, and CBRE is projecting rents will grow nearly 35 percent between 2016 and 2020.

Demand for urban office space is driving office investment activity in the urban core. SunTrust Financial Centre is on the market, with Highwoods Properties Inc. said to be buying that tower. A Miami firm recently closed on the Rivergate Tower, and plans are in the works for a 52-story mixed-use tower on the water that would include 205,000 square feet of office space.

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