Lakeland Office Space
Lakeland Office Space
The current market has brought challenges for office buildings in each submarket; however trophy properties in prime locations have been insulated from these market conditions. The market has stabilized with rental rates no longer in decline, however the volume of new deals is still significantly lower than seen in the years of 2004 through 2008.
Below is a quick summary and identifying characteristics of each office market in the greater Lakeland area. For any property specific information, please contact Cory Petcoff at 863-607-4100.
South Lakeland (Polk Parkway) Office Market
The South Lakeland market is relatively young with most buildings constructed within the last 30 years. These properties offer ample parking and attractive rental rates. The South Lakeland market is surrounded by residential uses and is appealing to many users because of its proximity to the homes of the owners and employees.
The south Lakeland office market is desirable for businesses with outside sales representatives as the Polk County Parkway (SR570) offers convenient access to all areas of central Florida. The Bank of Central Florida recently acquired the building located at 5015 South Florida Avenue and are making significant interior improvements to the property. This completed renovation creates a new supply of class A inventory in the South Lakeland market.
Dixieland Office Market
The Dixieland sub market is made up of the commercial properties along both the east and west sides of South Florida Avenue stretching from Ariana to Walnut Street. A Community Redevelopment Area (CRA) was created in Dixieland to promote development activities that would invigorate the existing businesses, attract new businesses and investment, and provide a neighborhood commercial center for the surrounding residents.
The CRA is young but has already been instrumental in the renovation of several properties. The CRA currently offers grants for uses such as façade improvement and restaurant infrastructure. The Dixieland neighborhood has become the home of many “creative class” business owners.
Downtown is the largest and most traditional office market in Lakeland. Major tenants in this submarket include Publix, FedEx, Verizon, the City of Lakeland, and several financial institutions.
Downtown provides an excellent office atmosphere with historic buildings, restaurants within walking distance, and incredible views, however many properties downtown offer challenging parking environments. Rents in Downtown are typically the highest of the four submarkets due to the inventory of class A office product in downtown.
The North Lakeland Office market encompasses a large geographical area that includes I-4, the medical office buildings available on Lakeland Hills, and the city and county government buildings around Memorial Boulevard.
Burton Katzman, a development company from Bingham Farms, Michigan, has planned 75,000 square feet of class A office development along I-4 on Mall Hill Drive (between Kathleen and Griffin Roads). While this project has been delayed indefinitely, at some point this will fill the void of trophy class A office product along I-4 in Lakeland.