Tampa, Florida - 2014-2015 Office Real Estate Market Transaction Data

Tampa, FL – 2015 Office Transaction Summary

We have analyzed sales of office properties in the Tampa market for 2015 (Tampa Addresses not MSA). 112 sales were reviewed and summarized. These sales were of office properties from less than 1,000 SF in size to several hundred thousand square feet in size. Sales transactions slowly decreased throughout the year with a high of 38 office sales in the 1^st quarter 2015. A slight decrease to 35 transactions for Q2 2015, than 26 office sales occurred in Q3 2015 and 13 transactions for the 4^th quarter. Total transaction volume for the year totaled over $820 Million and the average price per square foot for all transactions for 2015 was $177.01/SF with an average building size of 41,786 SF. On a quarterly basis the price per square foot analysis is as follows:

·         1^st Quarter 2015 – 38 Office Sales: Average Price per SF = $114.05

·         2^nd Quarter 2015 – 35 Office Sales: Average Price per SF = $137.53
·         3^rd Quarter 2015 – 26 Office Sales: Average Price per SF = $177.69
·         4^th Quarter 2015 – 13 Office Sale: Average Price per SF = $240.37
·         Full Year 2015 – 112 Office Sales: Average Price per SF = $177.01

*Data and charts from Xceligent

Tampa, FL – 2014 Office Transaction Summary

We have analyzed office sales data from the Tampa market for 2014. Just over 150 sales were reviewed and summarized. These sales were of office properties from less than 1,000 SF in size to several hundred thousand square feet in size. Office sales transactions by # of sales was strongest in Quarters 2 through 4 for 2014 with Q1 having the lowest number of transactions. Q1 had 23 office sales, Q2 had a substantial jump to 43 transactions, Q3 had 42 office sales, and Q4 had 43 transactions.  Total transaction volume for the office market totaled just under $700 Million for 2014 and the average price per square foot for all transactions for 2014 was $118.93/SF with an average building size of 39,438 SF. On a quarterly basis the price per square foot analysis is as follows:

·         1^st Quarter 2014 – 23 Office Sales: Average Price per SF = $75.75

·         2^nd Quarter 2014 – 43 Office Sales: Average Price per SF = $101.41

·         3^rd Quarter 2014 – 42 Office Sales: Average Price per SF = $111.90

·         4^th Quarter 2014 – 43 Office Sales: Average Price per SF = $140.47

·         Full Year 2014 – 151 Office Sales: Average Price per SF = $118.93

*Data and charts from Xceligent

Tampa Office Market - Year over Year Changes (2014 to 2015)

• Average Size Building Sold – Slight increase in the average building size sold from 39,438 SF to 41,786 SF
• Price per Square Foot – 49% increase in average $/SF from 2014 to 2015
• Number of Transactions – 26% decrease in the # of transactions from 2014 to 2015
• Dollar Volume of Transactions – 18% increase in the total $ volume for transactions from 2014 to 2015

Segmented Office Market Data for Tampa Florida by Building Size

Tampa, FL - Small Office Market Data (up to 2,000 SF)

Tampa, FL - Small Office Market Data (2,000 SF to 5,000 SF)

Tampa, FL - Office Market Data (5,000 SF to 15,000 SF)

Tampa, FL - Office Market Data (15,000 SF and up)

 

Thank you for your interest. For more information on the Tampa Office Market or to discuss your property valuation needs feel free to contact:

Mike Cliggitt, MAI, MRICS

813-405-1705 Direct Line

cliggittvaluation@verizon.net

Tampa Office Appraiser

 

 

 

 

 

 

Plant City Commercial & Industrial Real Estate Transaction Summary- Analysis

2012 Transaction Information and Analysis

(Data Extracted from MLS Only – Does not include additional transaction information from Non-MLS Listings/Sales)
 

18 Commercial Property Sales in the Plant City Market

·         12 Commercial Property Sales labeled as No Special Sale Conditions

o   66.66% No Special Sale Condition Property Sales

·         6 Commercial Property Sales labeled as REO/Bank-Owned Transactions

o   33.33% REO/Bank-Owned Property Sales

·         0 Commercial Property Sales labeled as Short-Sale Transactions

o   0% Short Sale Property Sales

Property Pricing Analysis

·         Sale Prices Ranging from a low of $70,000 to a high of $1,000,000

o   Sale Price Average was $251,417

o   Sale Price Median was $190,000

o   There were more property sales in the lower tier price segments or more sales that were less than the average sale price indicated above.

o   More Specifically 12 of the 18 Plant City Commercial Property Sales (67%) were below the average price of $251,417.

Sale Price/SF Analysis

·         Sale Price/SF Ranging from a low of $15.07/SF to a high of $182.38/SF

o   Sale Price/SF Average was $65.42

o   Sale Price/SF Median was $51.91

o   There were slightly more property sales in the lower tier price/SF segment meaning there more sales with a Price/SF less than the average Price/SF.

o   More Specifically 10 of the 18 Plant City Property Sales (62%) were below the average price of $65.42.

Sale Price to List Price Analysis

·         Sale Price Compared Lowest Listing Price Comparison revealed a range:

o   The Low was 64.24% Sale Price to Listing Price

o   The High was 100% Sale Price to Listing Price (1 Sold for 100% of Listing)

o   Average Sale Price to List Price was 80.41%

o   Median Sale Price to List Price was 79.69%

o   Most properties are selling near 80% range of their final listing price or to put it another way a 20% discount from the final/last listing price for a property is being realized by sellers in this market.

Note – The above sales included a range of property types such as: Warehouse, Office-Warehouse, Office, Medical Office, Motel/Hotel, Vehicle Related, Day Care, Church, Retail, General Commercial, etc.

The above information helps display the state of the commercial and industrial sales market in Plant City, as represented by the sold properties that were listed in MLS.  Two-thirds of these sales were typical transactions, but approximately 1/3 of the sales were bank-owned inventory. Bank-owned and/or distressed type sales continued to be part of the local commercial and industrial real estate sales market but made up less the ½ the sales within the MLS data for Plant City.

For more detailed information regarding the Plant City market or to have us perform an analysis or appraisal of your property please feel free to contact us.

Mike Cliggitt, MAI, MRICS

863-661-1165 (Direct)
mcliggitt.mai@verizon.net

Cliggitt Valuation, Inc.

Real Estate Analysts, Advisors, & Appraisers

www.cliggitt.com

Plant City Commercial,Industrial, and Investment Real Estate Appraisals

Plant City Land Appraisals

Commercial & Industrial Real Estate Sales Analysis in Mulberry, Bartow, Lake Wales, FL - '12

The commercial and industrial real estate market along the State Road 60 corridor in Polk County, which includes the cities of Mulberry, Bartow, and Lake Wales, Florida had a mix of transactions in 2012 with more than half typical property sales (60%) and the remaining 40% of property sales from the local MLS database were bank-owned or short-sale type transactions. Bank-owned inventory has impacted pricing of many property types within most areas in Central Florida. Industrial and commercial property market has not been immune from distressed real estate asset sales. Below is an overview of the commercial and industrial property sale transactions from the three cities in Polk County that are along the S.R. 60 corridor - Mulberry, Bartow, Lake Wales, Florida.

2012 Real Property Transaction Information and Analysis
(Data extracted from MLS Only - Does not include additional transactions from Non-MLS listings and property sales)

12 Commercial Property Sales in the Mulberry, Bartow, Lake Wales Market

· 7 Commercial and Industrial Property Sales labeled as No Special Sale Conditions

o 58% No Special Sale Condition Property Sales

· 5 Commercial and Industrial Property Sales labeled as REO/Bank-Owned Transactions

o 42% REO/Bank-Owned Property Sales

For more the complete article visit:

http://www.cliggitt.com/Blog.html?entry=mulberry-bartow-lake-wales-florida


Mike Cliggitt, MAI, MRICS (PDF of Cliggitt Professional Qualifications)
863-661-1165 (Direct Line)
Cliggitt Valuation, Inc.
Real Estate Analyst, Advisor, Appraiser
www.cliggitt.com
Real Estate Appraisers in Mulberry, Bartow, Lake Wales, Florida

Commercial and Industrial Property Sales Analysis in Winter Haven, Florida - '12

The commercial real estate market in Winter Haven, Florida continued to have a mix of transactions, consisting of both regular commercial and industrial property sales and bank-owned/short-sale type transactions. The bank-owned transactions continued to put pressure on pricing of commercial and industrial real estate. Below is is a quick synopsis of the 2012 transaction breakdown for the Winter Haven market.

2012 Transaction Information and Analysis

(Data Extracted from MLS Only – Does not include additional transaction information from Non-MLS Listings/Sales)

21 Commercial Property Sales in the Winter Haven Market

· 12 Commercial Property Sales labeled as No Special Sale Conditions

o 57% No Special Sale Condition Property Sales

· 7 Commercial Property Sales labeled as REO/Bank-Owned Transactions

o 33% REO/Bank-Owned Property Sales

· 2 Commercial Property Sales labeled as Short-Sale Transactions

o 10% Short Sale Property Sales

 

To read more visit:

http://www.cliggitt.com/Blog.html?entry=winter-haven-fl-2012-commercial

 

 

Mike Cliggitt, MAI, MRICS  (PDF of Qualifications)

863-661-1165 (Direct)

Cliggitt Valuation, Inc.

Real Estate Analysts, Advisors, Appraisers

www.cliggitt.com

Real Estate Appraiser in Winter Haven, Florida

 

Contract Rent vs. Market Rent in Appraisals

Contract Rent versus Market Rent in "Real Estate Appraisals"

The short version of this discussion is that contract rent is what is agreed to in a lease - " the contractual lease agreement" and market rent rent is what is the most likely rental rate based on market evidence/comparable rentals/leases. This is a very similar concept to the price vs. value discussion/blog. In relation to the prior price vs. value discussion, contract rent is the price an owner of property agrees to lease and the price a tenant agrees to pay as stipulated in the lease agreement. This could be based on market rent levels/market evidence or any number of factors not related to market rent. Where as, market rent is the opinion of what a property should or would lease for based on other comparable properties that have leased or are available for lease. Market rent is the most likely lease rate for a property based on the specifics of that property and how those property specifics relate to the market/other comparable rental properties.

The Appraisal of Real Estate published by the Appraisal Institute defines Contract Rent and Market Rent, as follows:

"Contract Rent is the actual rental income specified in a lease."

"Market Rent is the rental income that a property would probably command in the open market; indicated by the current rents that are either paid or asked for comparable space as of the date of the appraisal." 
 

How is this applied in the appraisal process.

The income/rent the property generates and/or can generate is analyzed in the Income Approach to value. In a standard "commercial real estate appraisal" (non-single family property) the Income Approach is one of three approaches to derive value of real estate and the analysis of market rent is only one step in the Income Approach in deriving a value for a property.

Depending on the type of assignment and the specifics of the property, both the contract rent and market rent can be analyzed, or just one may be analyzed. If market value is sought then market rent should typically be determined and analyzed and if the property is leased then market rent should be compared to the contract rent as the market value can be impacted by a difference in the terms of market rent vs. contract rent. If interested, see the previous discussion/blog on fee simple interest for how contract rent and market rent can impact the fee simple and/or leased fee values of property.

Beyond a typical appraisal, a "market rent study" or "market rent appraisal" can be conducted if only the appropriate rent is in question or sought. In this case an "independent, third party - appraiser" is brought in to estimate/derive fair market rent only and the value of the property is not needed.

There are many reasons why a market rent study is requested, such as in a business partnership situation where one partner owns the real estate and the fair market rent is needed to confirm that the appropriate amount is being paid. A tenant in a property may request to have a rent study done to help in negotiations with the landlord when nearing a lease renewal or when signing a new lease for a property to make sure they are not paying more than typical or to provide to shareholders in the business that the lease rate being paid by the business is appropriate. An owner/landlord may want to confirm that they are charging appropriate rents to their tenants based on comparable properties in order to minimize the risk of vacancies or to know their potential income exposure if a lease renewal is approaching. An investor may want to know what the most probable rents for a potential investment are in order to utilize in their investment calculations as part of their due diligence prior to closing on an investment property. There are a multitude of reasons for having an "independent, unbiased, third party - appraiser" determine the appropriate market rent for a property. If the fair market rent is in question, then a market rent study may be in order.

If you have questions regarding market rent and/or contract rent or if you think that you might need a market rent study and/or appraisal we are available to assist.

Please feel free to contact us.

Mike Cliggitt, MAI, MRICS

Cliggitt Valuation, Inc.
Real Estate Analysts and Advisors
Based in Central Florida (Lakeland, FL)
863-661-1165
www.cliggitt.com

    

New - Industrial Buildings For Sale - 16,000 SF on Triangle Street - Lakeland, Florida

Now Off Market

Attention Business Owners and Investors - New Lakeland, Florida Industrial Property on the Market For Sale

Recently Listed for Sale - 1019 & 1029 Triangle Street Industrial Warehouses

Priced to sell at $400,000 or $25/SF. Very versatile industrial/warehouse property.

For more information visit:  

http://lakelandenterprisezoneindustrial.blogspot.com/


Or for a complete property package/brochure visit:

Off Market



7,000 SF Office/Warehouse Building

 



9,000 SF Mini-Storage Building

Real Estate Appraisal - The Fee Simple Interest

"Real Estate Appraisal" - The Fee Simple Interest
The term fee simple in an appraisal is describing a group/bundle of rights associated with the ownership of the property.

Fee Simple is defined as "absolute ownerhsip unencumbered by any other interest or estate, subject only to the limitations imposed by governmental powers of taxation, eminent domain, police power, and escheat." definition from The Appraisal of Real Estate, Appraisal Institute

In essence, fee simple interest ownership in property is a complete form of ownership, subject only to standard goverment power. It is the most wholistic form of legal ownership there is.

So in an appraisal, when the appraiser states that he/she is appraising the fee simple interest in the property, they are stating that they are appraising the property unencumbered, except regarding the 4 governmental powers described above. The complete group of rights or many times referred to as a bundle of rights included with fee simple ownership are:

• The right to sell or sell an interest in the property
• The right to lease or lease an interest in the property
• The right to mortgage the property
• The right to give away/gift the property or an interest in the property
• The right to do none or all of these things

Doing any of the above, except of course for the last bullet of doing none of the above, will create a fractional ownership interest in the property that will typically need to be analyzed or discussed in an appraisal. For instance - when a property owner leases a property to a tenant for say a 5 year period, the property owner has given up the right of use/occupancy of the property and the tenant has gained that right for the 5 year lease period. However, the owner - now landlord - has given up that right for the right to receive income/rent from that tenant over the 5 year term of the lease. The leasing of the property to a tenant for 5 years has created a leased fee interest in the property for the owner and a leasehold interest in the property for the tenant.

Leased Fee Interest is defined as - "An ownership interest held by a landlord with the rights of use and occupancy transferred by the lease to others. The rights of the lessor (leased fee owner) and the leased fee are specified by contract terms contained within the lease" - Appraisal of Real Estate, Appraisal Institute

Leasehold Interest is defined as - "The interest held by the lessee (the tenant or renter) through a lease transferring the rights of  use and occupancy for a stated term under certain conditions as specified in the lease" - also from the Appraisal of Real Estate, Appraisal Institute

Leasing a property does create a form of fractional interest in real property. This is one example of how a partial interest in a property is granted/conveyed by an owner of property.

So does leasing a property change the value of the property, since some of the fee simple interest - bundle of rights - have been granted to a tenant? This is a very good question and one that is encountered often when appraising a property, however the answer is not yes or no but, it depends. It depends on the difference between contract rent and market rent, as well as the value of the fee simple interest (unencumbered), the length of the lease, the amount of lease (lease rate), and how that compares to market lease rates and terms. It also depends on investor perceptions, and a range of other issues.

If you have questions regarding how a lease could impact the value of your real estate or any other questions regarding a whole or fractional interest in real property, we are available to assist.

Please feel free to contact us.

Mike Cliggitt, MAI, MRICS

Cliggitt Valuation, Inc.
Real Estate Analysts & Advisors
Based in Central Florida (Lakeland, FL)
863-661-1165
www.cliggitt.com