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Important Highlights:
Tampa Bay:
- Tampa’s office vacancy rates are roughly 11.82% for all types of buildings.
- The unemployment rate in Tampa Bay has decreased to 2.5% in March of 2022, compared to the end of the 1st Quarter 2022 of 3.50%, Tampa Bay is below the national average of 3.50%
- Tampa Bay is the third-fastest-growing metropolitan region in the US for entrepreneurs.
Office Market:
- Office vacancy rates in Tampa are approx.11.82% between all office building class types and Class A buildings 2.15%
- Tampa’s overall rent has increased by 5.00% this year to 37.8% compared to 2021 which was 32.8%
- Tampas business-friendly environment, companies from out of state will continue to develop and migrate to Tampa Bay
Let’s Talk Rent Numbers:
| Submarket | Overall Average Asking Rent-All Classes | Overall Asking Rent Class A |
| Westshore | $27.70 Sq. Ft. | $37.01Sq. Ft. |
| Downtown Tampa | $19.05 Sq. Ft. | $35.57 Sq. Ft. |
| Northwest Tampa | $21.62 Sq. Ft. | $26.24 Sq. Ft. |
| South Tampa | $28.89 Sq. Ft. | N/A |
| I-75 Corridor | $24.31 Sq. Ft. | $27.70Sq. Ft. |
| Downtown St. Petersburg | $24.98 Sq. Ft. | $35.95 Sq. Ft. |
Construction Highlights:
- Construction costs continue to rise due to inflation.
- Tenants should be prepared to sign a longer lease 7+ years to absorb construction costs and pay out of pocket.
2022 3rd Quarter Forecast:
- With new buildings likely to be finished by the end of the year, total vacancy is predicted to rise as more available space enters the market.
- Flex schedules, which combine working from home and in the office, will continue to be tested. When faced with such short constraints, companies that have postponed their relocation and growth choices may find themselves with fewer options and less leverage when bargaining.
- Our business-friendly environment, companies from out of state will continue to develop and migrate to Tampa Bay
What does this mean for Tenants?
- Despite landlords being more lenient with lease economics, vacancy rates are not comparable to other significant markets in the United States. Landlords in Tampa Bay are not as driven to fill vacancies as they are in other parts of the country.
- Take advantage of market conditions.
- Take a look at your existing working situation. Is your staff content with their jobs?
What does this mean for Landlords?
- Changing the asking rent to obtain a competitive advantage over landlords who are obligated to maintain their face rents
- More flexible lease periods and concessions, such as a rent decrease, should be made available.
- Start advertising open space six months ahead of time.
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