Tampa Real Estate Market Report

Tampa Office Market

Annual full-service asking rental rates reached a new high at $28.53/SF, reflecting a 0.1% decrease year over year at the end of the first quarter of 2025. The vacancy rate edged higher to 15.4%, rising by 30 basis points both quarter over quarter and year over year, driven by move outs in the Gateway and Westshore submarkets. The development pipeline continues to contract, with 428,929 square feet currently under construction—representing just 0.7% of total market inventory. Leasing activity totaled 1.8 MSF for the quarter, marking the strongest first-quarter performance in over 15 years. Volume surpassed the 16-year first-quarter average of 1.3 MSF by 43.9% and rose 7.3% compared to first quarter of 2024.

Tampa Industrial Market

The market saw 318,702 SF of positive absorption in the first quarter 2025, the lowest quarterly occupancy gain since 2011. However, net absorption is expected to increase as tenants begin occupying spaces from leases signed in late 2024 and early 2025. Overall rental rates in Tampa’s industrial market rose 1.4% year over year in the first quarter of 2025, reaching a record high of $8.72/SF. The tempered growth over the past two years reflects the ongoing supply and demand imbalance in the market. The construction pipeline recorded 1.7 MSF of deliveries by the end of the first quarter of 2025. Meanwhile, space under construction decreased to 4.6 MSF, marking the fourth consecutive quarter of decline. Tampa’s industrial vacancy rate rose 140 basis points year over year to 7.5%, continuing a trend of supply and demand imbalance over the past two years, as the vacancy rate continued to increase from a record low of 4.7% in 2022.