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The Lakeland, Florida office market consists of four
sub-markets: South Lakeland (Polk Parkway), Dixieland,
Downtown, and North Lakeland. Each market offers its own
distinct assets and short comings and each office user needs
to select the market that will suit them and their business
best. 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
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.
North Lakeland
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.
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