The Dilmore Report: Tallahassee Office Q1 2020Photo by Juhasz Imre

Originally Posted On: https://jamesfletcherdilmore.com/the-dilmore-report-tallahassee-office-q1-2020

 

Market Indicators:

Vacancy: 6.18%

Net Absorption: (314,719) SF

Construction: 83,980 SF

Deliveries: 192,180 SF

Average Asking Rent (PSF): $19.45

Average Market Rent (PSF): $18.72

Average Cap Rate: 8.6%

Sales Activity:

Sales of office space in Tallahassee have increased since Q1 of 2019 with a sales volume of nearly $20,000,000 from only $5,000,000 in Q1 2019. The price per square foot has steadily increased to $136 PSF from $130 PSF this time last year. The increased sales volume can largely be contributed to one large medical office transaction that occurred in the middle of January for $12,000,000 for the 26,920 SF property located at 2000 Centre Pointe Blvd. that was acquired by a privately held medical office investment firm from Nashville, TN.

Leasing Activity:

Tallahassee’s office leasing activity was off to a hot start in the first quarter of 2020, with eight office leases executed for 5,000 SF or more, a great deal of activity for the market. The largest lease was brokered by John McNeil for 23,444 SF at 215. S. Monroe St. located in the heart of Downtown Tallahassee. A 3,652 SF lease expansion was completed by Shawn Maxey at 2626 Care Dr. for Capital Regional Vascular Surgery.

Notable new leases signed were 10,921 SF lease brokered by Fletcher Dilmore for the national information technology firm, CNSI at 1650 Summit Lake Dr. located in the Summit East Technology Park. A 9,000 SF lease where Lewis Buford represented the tenant Bryant Miller Olive P.A. and Jimmy Nystrom represented the landlord of 1545 Raymond Deihl Rd. was completed in early January. And Atkins Engineering signed a 10,500 SF lease at 3522 Thomasville Rd. brokered by Jimmy Nystrom at the end of January.

Rental Rates:

Tallahassee has seen a steady growth of Office rental rates, with the average asking office rent in January was $19.19 PSF and has since grown to $19.45 PSF.

The Full Report can be downloaded at the link below:

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Fletcher Dilmore