Office Market Tampa Bay Current Phase of Real Estate Cycle

 

The graph below depicts the historical phases of the Office Market in the Real Estate Market Cycle in Tampa Bay from 2004 to 2012

Indications are that the Office market is now in the Recovery Phase of the Cycle

  • The Recovery Phase is typically characterized by:
  • Decreasing Vacancy Rates
  • Low New Construction
  • Moderate Absorbtion Low to Moderate  Employment Growth
  • Negligible to Low Rate of Rental Growth

 

Historical Tampa Bay Office Market Phase of Real Estate Cycle;

 

 

DIRECTION =  UP                                                          DIRECTION =  DOWN
0 to 1—  RECOVERY —  Phase 1                       6 to 5—  HYPERSUPPLY  —  Phase 1
1 to 2—  RECOVERY —  Phase 2                       5 to 4—  HYPERSUPPLY  —  Phase 2
2 to 3—  RECOVERY—   Phase 3                       4 to 3—  HYPERSUPPLY  —  Phase 3
3 to 4— EXPANSION—  Phase 1                       3 to 2—  RECESSION       —     Phase 1
4 to 5— EXPANSION—  Phase                           2 to 1—  RECESSION       —     Phase 2
5 to 6— EXPANSION—  Phase 3                       1 to 0—  RECESSION       —     Phase 3

 

The theoretical Real Estate Cycle is often depicted in the shape of  a normal distribution. In practice, the shape may be different.

 

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