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Market Report

Tampa-St. Petersburg Office Market Report

4Q 2021

Tampa’s Favorable Business Climate Provides Office Sector Optimism

Sarasota-Bradenton area sidesteps market challenges. The combination of supply additions and tenant consolidations took its toll on Tampa’s office fundamentals over the past 12 months. Since July of last year 1.2 million square feet of office space was delivered, marking the largest supply wave in a decade. Concerns over the health crisis prompted employers to reduce their office footprint, causing record levels of sublet space to enter the market. Combined, these actions increased vacant stock by over 3.1 million square feet, elevating availability to 13.1 percent. One submarket in particular defied this trend, however. Office demand in Sarasota-Bradenton received a significant boost from the medical office sector, due to the submarket’s aging population. Vacancy remained relatively steady at 7.9 percent while asking rents grew 5.2 percent over the past four quarters.
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