Tampa-St. Petersburg Office Market Report

Vacancy holding much steadier than last year. Office demand in Tampa got off to a strong start in 2023, recording two consecutive quarters of positive net absorption after the figure totaled negative 647,000 square feet last year. As a result, metrowide vacancy was unchanged at 13.1 percent from January through June 2023, an optimistic sign of stability after the rate had surged by 110 basis points over the prior 15 months. Helping drive this momentum, newly-built space is frequently delivering with a tenant already signed on, and existing higher-quality offices are generating leasing activity. In fact, the amount of vacant Class A stock shrunk by more than 150,000 square feet marketwide during the first half. Conversely, lower-quality office space is facing more headwinds to ink lease renewals and attract new tenants. Vacant supply in the Class B/C segment rose by 236,000 square feet across the opening two quarters of 2023.