1. Q2 2012 | OFFICE
TAMPA BAY FLORIDA
OFFICE RESEARCH REPORT Tampa Bay Florida
Slow Gains, More Wait-And-See
EXECUTIVE SUMMARY
Leasing activity in the Tampa Bay area office market edged up slightly in the second quarter, with
businesses related to health care and technology being the most active. While there is no swift
rebound, the market continues to improve as the jobless rates decline. About 15.9% of the region’s
79.3 million-square-foot market was vacant on June 30, down from 16.6% in the second quarter
of last year and 16.9% in 2010. Tenant demand has edged up over the past few years, with rental
rates remaining flat or down slightly in the first half of 2012. The overall direct asking rate of $19.16
per square foot in the second quarter was down from $19.59 a year earlier. Leasing activity is
MARKET INDICATORS
expected to remain steady in the second half, but a significant uptick isn’t expected since many
Q2 2012 Q3 2012* businesses have adopted a wait-and-see attitude. It’s the same trend locally and nationally. Some
businesses are looking to take advantage of the lower rates.
VACANCY
NET ABSORPTION
• One month free rent remained the standard • Sales of foreclosed office properties by
CONSTRUCTION on new leases. lenders appears to be picking up.
OVERALL • Brokers report escalations in lease rates are • Two Tampa CBD office buildings are
RENTAL RATE growing more slowly. currently listed for sale. Both are Class A
CLASS A RENTAL • As for investment sales, risk appetite seems properties.
RATE
to be growing, which could lead to more • The ‘micro market’ of Hillsborough County’s
modest return expectations by investors. Rocky Point is seeing rising rental rates in
*Relative to prior period. Arrows compare
current quarter to the previous quarter historically But a disconnect remains between sellers buildings with strong occupancy.
adjusted figures. All data in this report includes and buyers on price.
buildings 10,000 square feet and greater.
COMPLETIONS, ABSORPTION AND VACANCY RATES
OVERALL OFFICE MARKET
SUMMARY STATISTICS, Q2 2012 Completions Net Absorption Overall Vacancy Class A Vacancy VACANCY RATES
CURRENT VACANCY RATE: 15.9% 20% 500 Tampa Bay’s overall
office vacancy rate fell
PREV. QTR. VACANCY RATE: 16.1% 18% 400
Square Feet (In Thousands)
to 15.9 percent in the
YEAR AGO VACANCY RATE: 16.6% 16% second quarter of
300
14% 2012. Class A vacancy
200 declined 6.4 percent
Vacancy
NET ABSORPTION: 203,854 sf 12%
from the previous
10% 100 quarter to 16.0
UNDER CONSTRUCTION: 374,000 sf 8% percent.
0
6%
-100
CURRENT AVG. ASKING RATE: $19.16/FS 4%
PREV. QTR. AVG. ASKING RATE: $19..36/FS 2% -200
YEAR AGO AVG. ASKING RATE: $19.59/FS 0% -300
Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
SOURCE: COSTAR & COLLIERS INTERNATIONAL

2. RESEARCH REPORT | Q2 2012 | OFFICE | COLLIERS INTERNATIONAL TAMPA BAY FLORIDA
In the Bay area, seven companies are reportedly About 15.2% of Westshore’s 15.5 million square
UNEMPLOYMENT TRENDS
shopping for a combined square footage of 1 feet was vacant on June 30, compared to
million square feet. Three want large blocks of 17.9% in the same period last year and 19.9%
Florida Tampa MSA USA
space, between 80,000 square feet to 100,000 two years ago. Both submarkets saw a small
14
square feet, in build-to-suit deals. Developers increase in occupied space in the first half of
are competing for their business, with the the year. About 24,000 square feet downtown
12
transactions not expected to close for another and 61,000 square feet in Westshore.
10 12 to 24 months. Health care companies,
including call centers tied to the medical
INVESTMENT SALE ACTIVITY
8 industry, were the biggest driver in the local
office market. In the first half of the year, BMD Management purchased a 80,445 square
6 WellCare Health Plans Inc. leased 66,000 foot class A office facility located at 13577
square feet at Premier Corporate Center, 3928 Feather Sound Drive in Clearwater for $9.525
4
Premier North Drive, in Carrollwood. million ($118 psf) from Highwoods Properties.
The building was sold at a 9.5 percent cap rate
2
VACANCY INCHES DOWNWARD and was 98.8 percent leased at the time of
0
purchase. The building had last sold in October
Supply still outweighs demand in the region’s
May-07
May-08
May-09
Nov-10
Nov-11
May-10
May-11
May-12
Nov-07
Nov-08
Nov-09
1997 for $8 million.
two most desirable office submarkets –
Watermark 5 and Watermark 7, located in the
Westshore and downtown Tampa. But vacancy
Westshore submarket, were both sold to
The Tampa Bay MSA unemployment rate rates in both submarkets were lower than two
Empire Solutions for $3.75 million ($70 psf)
posted 8.6 percent in May 2012, which years ago and appear to be trending downward.
from Marketview Properties III, LLC. The two
represents a 19 percent decrease from May
Downtown Tampa’s overall vacancy rate of building combined measure 53,867 square feet
2011. The State of Florida rate also ended
May 2012 at 8.6 percent, while the national 13.7% was down from 16% in the second in size.
rate posted 8.2 percent. quarter of 2011 and 15.2% in 2010.
Westshore – touted for its many newer Class A Other properties are expected to come to
Source: US Bureau of Labor Statistics
buildings and proximity to Tampa International market in the second half of 2012, particularly
Airport, downtown Tampa and Clearwater – in the Tampa CBD and Westshore, due to pent
has seen its overall vacancy rate fall more than up demand and stabilizing fundamentals of
4 percentage points since 2010. well-leased office projects.
TRANSACTION UPDATE
SALES ACTIVITY
PROPERTY NAME CLASS BUYER NAME SIZE SF SALES PRICE SUBMARKET
409 Bayshore Blvd B Tampa General Hospital 53,481 $16,777,347 ($313.71/sf) South Tampa
Waterview at Feather Sound A BMD Management 80,445 $9,525,000 ($118.40/sf) Gateway
Watermark - Buildings 5 & 7 B/C Empire Solutions 53,867 $3,750,000 ($69.62/sf) Westshore
100 W. Kennedy Blvd B Convergent Management LLC 67,615 $2,200,000 ($32.54/sf) Tampa CBD
LEASING ACTIVITY
PROPERTY NAME CLASS TENANT NAME SIZE (SF) LEASE TYPE SUBMARKET
Premier Corporate Center B WellCare Health Plans Inc. 66,000 New Carrollwood
Roosevelt Technology Center* A eMASON, Inc. 40,647 New Gateway
Bay Vista Gardens II* C Equant, Inc. 21,665 Renewal North Pinellas
Harbourside* A EmCare 19,819 New Bayside
Northdale Executive Center I* A PCL Civil Constructors, Inc. 19,195 Renewal Northwest Tampa
Promenade at Park Place* B Human Medical Plans, Inc. 7,953 New Bayside
Wells Fargo Center* A Linkshare Corporation 6,519 Renewal Tampa CBD
*Colliers International Transaction
P. 2 | COLLIERS INTERNATIONAL TAMPA BAY FLORIDA

3. RESEARCH REPORT | Q2 2012 | OFFICE | COLLIERS INTERNATIONAL TAMPA BAY FLORIDA
UPDATE SUBMARKET COMPARISONS
SUBMARKET BREAKDOWN
Total Net Absorp. New
Property Total Inventory Direct Vac. Net Absorp. YTD Under Avg. Direct Asking Rate Full
Bldgs. Vac. Current Completions
Class S.F. % S.F. Construc. S.F. Service
% Qtr. S.F. S.F.
TAMPA CBD
A 12 4,800,639 14.4% 15.4% 867 -7,901 0 0 $23.13/fs
B,C 62 3,643,678 11.4% 11.5% 21,838 31,939 0 0 $18.01/fs
Overall 74 8,444,317 13.1% 13.7% 22,705 24,038 0 0 $21.37/fs
WESTSHORE
A 40 7,614,612 17.5% 17.9% 115,457 86,337 0 250,000 $25.86/fs
B,C 203 7,938,573 11.7% 12.7% -25,979 -25,256 0 36,000 $19.03/fs
Overall 243 15,553,185 14.6% 15.2% 89,478 61,081 0 286,000 $23.06/fs
I-75 CORRIDOR
A 43 6,736,779 14.7% 15.6% 73,920 38,936 0 0 $21.37/fs
B,C 281 9,191,110 18.0% 18.2% 886 83,483 0 0 $17.28/fs
Overall 324 15,927,889 16.6% 17.1% 74,806 122,419 0 0 $18.87/fs
NORTH PINELLAS
A 15 1,320,092 15.7% 15.7% 49,811 34,568 0 0 $19.08/fs
B,C 154 3,767,782 17.7% 17.7% -39,600 -22,670 0 0 $16.00/fs
Overall 169 5,087,874 17.2% 17.2% 10,211 11,898 0 0 $17.02/fs
GATEWAY
A 24 3,077,170 4.0% 5.7% -10,608 -43,411 0 0 $20.89/fs
B,C 123 4,760,050 16.9% 17.2% 11,747 -30,354 0 0 $16.39/fs
Overall 147 7,837,220 11.8% 12.7% 1,139 -73,765 0 0 $17.52/fs
ST. PETERSBURG CBD
A 9 1,609,161 18.5% 19.3% 56,494 56,206 0 0 $22.29/fs
B,C 54 2,157,478 9.2% 9.2% 4,576 2,644 0 0 $17.82/fs
Overall 63 3,766,639 13.2% 13.5% 61,070 58,850 0 0 $20.22/fs
TAMPA BAY OVERALL OFFICE MARKET
Total Net Absorp. Net New Overall Avg. Class A Avg.
Total Inventory Direct Vac. Under
Qtr. & Year Bldgs. Vac. Current Absorp. Completions Direct Asking Direct Asking
S.F. % Construc. S.F.
% Qtr. S.F. YTD S.F. S.F. Rate F.S. Rate F.S.
2012 2Q 1,768 79,257,603 15.4% 15.9% 203,854 -39,677 15,302 374,000 $19.16/fs $23.04/fs
2012 1Q 1,767 79,242,301 15.7% 16.1% -243,531 -243,531 53,500 389,302 $19.36/fs $23.20/fs
2011 4Q 1,765 79,188,801 15.4% 15.8% 428,794 451,564 0 442,802 $19.59/fs $23.29/fs
2011 3Q 1,765 79,188,801 16.0% 16.3% 207,617 22,770 0 120,802 $19.63/fs $23.35/fs
2011 2Q 1,765 79,188,801 16.2% 16.6% -100,762 -184,847 0 105,500 $19.59/fs $23.16/fs
2011 1Q 1,765 79,188,801 16.0% 16.4% -84,085 -84,085 10,492 105,500 $19.72/fs $23.18/fs
2010 4Q 1,764 79,178,309 15.9% 16.3% 177,975 74,300 0 98,492 $19.93/fs $23.44/fs
2010 3Q 1,764 79,178,309 16.0% 16.6% 261,427 -103,675 0 98,492 $19.97/fs $23.61/fs
2010 2Q 1,764 79,178,309 16.3% 16.9% -214,003 -365,102 29,034 98,492 $20.01/fs $23.58/fs
COLLIERS INTERNATIONAL TAMPA BAY FLORIDA | P. 3

4. RESEARCH REPORT | Q2 2012 | OFFICE | COLLIERS INTERNATIONAL TAMPA BAY FLORIDA
SUBMARKET MAP
522 offices in
62 countries on
6 continents
United States: 147
Canada: 37
Latin America: 19
Asia Pacific: 201
EMEA: 118
• $1.8 billion in annual revenue
• 1.25 billion square feet under
management
• Over 12,300 professionals
TAMPA BAY CITY LEADER:
Ryan Kratz
Executive Vice President
Brokerage | Marketing | Operations
Corporate Office
311 Park Place Boulevard
Suite 600
Clearwater, FL 33759
John Gerlach, CCIM TEL +1 727 442 7184
Alan Feldshue Jeff Tolrud, CCIM
Managing Director Office Services Managing Director, Office Services Managing Director Investment
alan.feldshue@colliers.com jeff.tolrud@colliers.com Services
www.colliers.com/Alan.Feldshue www.colliers.com/Jeff.Tolrud john.gerlach@colliers.com
www.colliers.com/John.Gerlach
Carol Warren, CCIM Jim Allen Mia Jarrell
Senior Director Managing Director Managing Director, Office Services
Commercial Services Healthcare Services Group mia.jarrell@colliers.com
carol.warren@colliers.com jim.allen@colliers.com www.colliers.com/Mia.Jarrell
www.colliers.com/Carol.Warren www.colliers.com/Jim.Allen
Christopher Leonard, CCIM Ryan Kratz Mary Clare Codd, CCIM, SIOR RESEARCH CONTACT:
Director, Commercial Sales Executive Vice President Senior Office & Industrial Specialist
christopher.leonard@colliers.com Brokerage | Marketing | Operations maryclare.codd@colliers.com Matt Dolan
www.colliers.com/ ryan.kratz@colliers.com www.colliers.com/MaryClare.Codd
Christopher.Leonard www.colliers.com/Ryan.Kratz GIS & Research Administrator
Claire Calzon Jim Parker, CCIM Melanie Jackson Market: Tampa Bay
Managing Director Director Commercial Services Senior Associate Office Services TEL +1 813 221 2290
Office Services jim.parker@colliers.com melanie.jackson@colliers.com
claire.calzon@colliers.com www.colliers.com/Jim.Parker www.colliers.com/Melanie.Jackson FAX +1 813 224 9403
www.colliers.com/Claire.Calzon
EMAIL matt.dolan@colliers.com
Mackenzie Gerlach Joanne LeBlanc Kevin Yeager
Associate, Investment Services Associate, Office Services Senior Associate, Office Services
mackenzie.gerlach@colliers.com joanne.leblanc@colliers.com kevin.yeager@colliers.com
www.colliers.com/ www.colliers.com/ www.colliers.com/Kevin.Yeager
Mackenzie.Gerlach Joanne.LeBlanc
Copyright @ 2012 Colliers International
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy,
we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting
Tampa Bay Florida
on any of the material contained in this report.
This report includes owner and non-owner occupied space 10,000 sf and greater. Directional arrows compare current quarter to previous quarter Accelerating success.
numbers. Arrows show change when there is a 10 cent or more change in lease rate or 0.5% or more change in vacancy rate. Due to continual updates
and refinements in the historical database, some of the data in this report may not match data published in previous reports. Sources: Costar Property
and Colliers International Tampa Bay Florida.
www.colliers.com/marketname