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Tampa Bay Office Market Report: Q2 2026 Recap & What It Means for You

Tampa Bay’s office market is sending a mixed signal this quarter. On the surface, net absorption came in at -71,800 SF for Q2 2026, a headline number that looks discouraging. But look under the hood and the story is more nuanced: Westshore and Downtown Tampa CBD both posted positive absorption, while it was Class B suburban properties that drove the bulk of the losses. Here’s everything you need to know about where the Tampa Bay office market stands right now, and what it means whether you’re a tenant, a landlord, or just watching the market.

Tampa Bay Office Market at a Glance (Q2 2026)

How Q2 2026 Compares to Recent Quarters

 Q2 2026Q1 2026Q2 2025
Total Inventory (SF)63,068,25163,068,25163,068,251
Net Absorption (SF)-47,726+19,724+293,768
Overall Vacancy15.3%16.0%15.4%
Under Construction (SF)94,13094,13094,130
Overall Asking Rate (FS)$30.76$31.30$30.75

Tampa Bay’s office market recorded -71,800 SF of net absorption in Q2 2026, reflecting limited large-block activity and anticipated move-outs. The headline negative number masks a mixed story: Westshore and Tampa CBD both posted positive absorption, while Class B properties drove the bulk of occupancy losses. Class A sublease vacancy fell to just 2.7%, the lowest level since the pandemic onset. Total sublease availability of 1.6M SF is the tightest since 2020.

The Economic Backdrop

A few outside forces are shaping the office market right now:

Submarket-by-Submarket Breakdown

Vacancy and rates vary a lot depending on where you look. Here’s the Q2 2026 picture across Tampa Bay’s core submarkets:

SubmarketVacancy RateNet AbsorptionAvg Asking Rate
Downtown Tampa CBD~12.1%+14,697 SF$39.30/SF
Westshore~14.0%+61,116 SF$38.38/SF
South Tampa8.7%-773 SF$37.51/SF*
Downtown St. Pete~8.7% (Tightest)-11,057 SF$44.00/SF
Northwest Tampa~22.0%-13,683 SF$24.71/SF
I-75 Corridor20.0% (Highest)-89,110 SF$25.54/SF*

Urban cores continue to dramatically outperform suburban corridors — Downtown St. Pete is the tightest submarket in Tampa Bay, while I-75 Corridor carries the highest vacancy.

Let’s Talk Rent Numbers

Class A rates are up 5.0% year-over-year, while Class B rates are down 1.4% year-over-year. The urban-suburban divide is stark, with core markets commanding rates 50–75% higher than suburban corridors.

SubmarketAvg FS RateClass A FS RateMarket Posture
Downtown Tampa CBD$39.30/SF$43.25/SFLandlord Favorable
Westshore$38.38/SF$45.40/SFTightening
South Tampa$37.51/SF*$50.22/SFLandlord Favorable
Downtown St. Petersburg$44.00/SFN/ALandlord Favorable
Northwest Tampa$24.71/SF$28.46/SFTenant Favorable
I-75 Corridor$25.54/SF*$29.25/SFTenant Favorable

Tampa Total Market — Historical Trend

QuarterInventory SFTotal Vac%Net Abs YTDAvg FS RateClass A FS Rate
2026 Q244,237,50215.1%+153,319$29.91$36.55
2026 Q144,237,50216.2%+132,941$29.81$35.78
2025 Q444,237,50216.4%+16,283$29.64$35.80
2025 Q344,237,50216.3%+46,342$29.45$34.94
2025 Q243,808,57315.9%+232,102$29.29$34.79

Significant Market Activity

Notable Leases This Quarter

  • 5380 Tech Data Dr. (Bay Vista Pavillion) — RomTech, 50,013 SF, Direct, Bayside
  • 10441 University Center Dr. (University Center II) — Eagle Analytical Services, 48,090 SF, Direct, I-75 Corridor
  • 18302 Highwoods Preserve Pky. (Burns & Wilcox Center) — Depository Trust & Clearing Corp., 32,203 SF, Renewal, I-75 Corridor
  • 200 Central Ave (200 Central) — Kimley-Horn, 24,272 SF, Direct, Downtown St. Pete
  • 8800 Grand Oak Cir. (Hidden River Corp. Ctr. One) — The Coca-Cola Company, 24,165 SF, Direct, I-75 Corridor

Notable Sales This Quarter

  • 400 N. Ashley Dr. (Rivergate Tower) — 500,000 SF, purchased by Ally Capital Group, Downtown Tampa CBD
  • 311 Park Place Blvd. — 118,447 SF, purchased by Joseph A. Kennedy, Bayside
  • 13101 Telecom Dr. (Oakview Center) — 79,393 SF, purchased by USF Federal Credit Union, I-75 Corridor

New Construction Pipeline

Zero new groundbreakings for four consecutive quarters. With only ~122K SF under construction on average across both sources — approximately 0.1–0.2% of total inventory — this is the thinnest pipeline in over a decade.

  • E2 — Grow Financial Place (Ybor City): 94,130–106,338 SF, Delivering Q2. The only active project underway; Grow Financial’s new HQ.
  • Downtown Tampa CBD Pipeline: 94,000 SF under construction.
  • Downtown St. Pete Pipeline: 44,000 SF under construction.
  • Midtown East (Westshore): 131,790 SF, delivered 2025. Tampa’s first new Class A building since 2021, and already near fully leased.

What This Means for You

For Tenants & Business Owners

For Landlords & Property Owners

Q3 2026 Forecast & Market Outlook

OSB Q3 2026 Forecast Summary

IndicatorQ2 2026Q3 2026 ForecastDirectionConfidence
Overall Vacancy~17.6%~17.0–17.5%Slight ImprovementModerate
Downtown Tampa Vacancy (Avg)~12.1%~11.0–12.5%TighteningModerate-High
Westshore Vacancy (Avg)~14.0%~13.0–14.5%TighteningModerate-High
I-75 Corridor Vacancy~20.0%Elevated / Slow ImprovementStructuralHigh
Avg Asking Rate$30.38/SF$31.15/SFStable to RisingModerate
Class A Rate$38.77/SF$39.25/SFIncreasingModerate-High
Net Absorption (Avg)~-72K SFModest Positive to NeutralImprovingModerate
Under Construction~122K SFNo New Starts ExpectedConstrainedHigh
Top-of-Market Rents>$75/SF Full Service$79/SF Full ServiceSustainedHigh
Future Pipeline (2028–2030)Early Movement SignalsWatch for AnnouncementsFormingLow-Moderate

Data sources: Market data sourced from believed to be accurate sources. Economic data: FloridaCommerce; U.S. Bureau of Labor Statistics. This report was prepared by Office Space Brokers for informational purposes only and does not constitute legal, financial, or investment advice. Forward-looking statements represent OSB professional opinion and are not guarantees of future performance. © 2026 Office Space Brokers. All rights reserved.

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What CEOs Are Asking About Tampa Bay Office Real Estate Right Now Part 2 of 2

As Tampa Bay continues to attract businesses and talent, companies are making increasingly deliberate real estate decisions. The conversations happening today go beyond leasing and purchasing. They are centered around timing, positioning, and long term impact. You can read our Part 1 here.

5) One of the most important questions CEOs are asking is where companies are relocating within the region. Submarkets like Westshore, Downtown Tampa, Midtown, and Downtown St. Petersburg are seeing continued movement as businesses seek proximity to talent, amenities, and infrastructure. Location is no longer just geographic. It is a competitive advantage.

6) At the same time, owners and investors are evaluating whether now is the right time to sell. While demand remains, buyers are more selective and underwriting is more disciplined. This has created a market where preparation, financial clarity, and strategic timing directly influence outcomes.

7) Timing is also critical for Tenants. Companies that begin their search early maintain control of the negotiation and access to the best opportunities. Those that wait often find themselves making reactive decisions with limited leverage.

8) Many leaders are questioning which buildings will remain relevant. The answer is increasingly tied to quality, experience, and adaptability. Older, underinvested assets face greater challenges, while well positioned properties continue to outperform. The ones we are seeing performing the best in Tampa Bay in Midtown, Westshore Business District in Tampa, Downtown Tampa and Downtown St Petersburg.

Ultimately, the future of office space in Tampa Bay is not uncertain. It is evolving. Businesses that approach commercial real estate with intention and strategy will continue to gain an advantage.

The companies that win are not simply choosing space. They are aligning their real estate with where they are going next.

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What CEOs Are Asking About Tampa Bay Office Real Estate Right Now Part 1 of 2

Tampa Bay’s office market continues to evolve, yet one thing remains consistent: decision makers are asking smarter, more strategic questions before committing to space.

1) One of the most common questions today is whether the region is running out of quality office space. The reality is not a shortage, but a shift. Companies are consolidating into higher quality buildings that better reflect their brand, culture, and long term vision in areas such as Downtown Tampa and Westshore Business District. As a result, the best spaces in these submarkets are leasing faster, and often at a premium.

2) At the same time, leaders are reevaluating whether to lease or buy. This decision is no longer just about occupancy. It is about capital allocation, flexibility, and long term positioning. In some cases, ownership creates wealth and stability. In others, leasing preserves liquidity and allows for agility.

3) Another area of focus is cost. Many executives initially look at rental rates, but quickly realize that operating expenses, property taxes, and insurance significantly impact total occupancy cost. Understanding these variables early can prevent costly surprises later.

4) Perhaps the most discussed topic is space utilization. Hybrid work has changed how companies think about square footage. The question is no longer how much space per employee, but how space supports collaboration, productivity, and growth.

What this all signals is a more sophisticated approach to real estate. CEOs are no longer viewing office space as a fixed expense. They are treating it as a strategic lever that influences talent, brand perception, and financial performance.

Those who ask the right questions early are the ones who create the most value from their real estate decisions.

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3rd Quarter 2025 Tampa Bay Office Market Report and Forecast

Economic Performance & Employment Trends:

  • Although Tampa Bay’s unemployment rate increased to 3.9% in Q3 and is up from 3.5% from Q3 2024. Still falls below the national rate of 4.3%.
  • “FloridaCommerce announced that the Tampa metro area added 16,400 jobs (+1.2%) in the private sector over the year in July 2025 and has exceeded the national rate for 50 of the last 52 months,” FloridaCommerce.
  • “The area gained the third-highest number of private sector jobs and led the metro areas in job gains over the year in July 2025 in manufacturing, adding 1,600 jobs. Industry gaining the most jobs over the year in the Tampa metro area was education and health services, adding 5,600 jobs” says FloridaCommerce. 
  • Inflation Rate was up 2.9% as of August 2025 over the past year via the US Bureau Labor Statistics. 

Key Metrics in the Office Market:

  • Tampa Bay’s average asking rents over all classes have climbed again and hit a record high,  Approx. 3.0% year-over-year, driven primarily by a 5% increase in Class A rates, compared to just a Approx. 2% bump for Class B assets. The pricing differential between urban and suburban Class A properties continues to widen.
  • Consistent with Q2, majority of leasing occurred in Class A buildings with over 65% of the activity, reflecting the preference of quality building by Tenants
  • Overall vacancy ended at +/- 18.9% with Class A buildings at +/- 14.6%
  • Q3 ended in positive absorption of +/- 200,000 SF, for the second consecutive quarter with a minimal negative absorption in Q1.

Let’s Talk Rent Numbers:

SubmarketOverall Average Asking Rent-All ClassesOverall Asking Rent Class A
Westshore$37.89 Sq. Ft.$43.88  Sq. Ft.
Downtown Tampa$43.13 Sq. Ft.$45.62 Sq. Ft.
Northwest Tampa$26.28 Sq. Ft.$27.56 Sq. Ft.
South Tampa$43.00 Sq. Ft.$52.00 Sq. Ft.
I-75 Corridor$25.78 Sq. Ft.$26.05 Sq. Ft.
Downtown St. Petersburg$41.02 Sq. Ft.$45.69 Sq. Ft.

New Construction Pipeline:

  • Midtown East: The first New Class A building built since 2021 which is 131,790 SF and the second phase of Midtown Tampa, mixed use project located in the heart of Tampa. Since its deliver, 60% vacancy remaining. Midtown East  delivery was part of the reason of the vacancy increase in Westshore during 2nd Qtr. which improved in the 3rd Qtr.
  • Ybor: 92,530 SF for Grow Financial in Ybor broke ground in 2nd quarter where Grow Financials new headquarters will be located from i-75 area.

2025 4th Quarter Forecast:

What does this mean for Tenants?

Advantages:

  • Companies who desire to be in suburban areas such as Northwest Tampa in near Hillsborough Avenue/ Veterans Expressway and Carrollwood and I-75 Corridor,  have more negotiating leverage on rental rate and lease concessions due to the higher vacancy rates in buildings.
  • Tenants in the 10,000 + Square Foot range have a stronger position across all Submarkets when negotiating with Landlords. Especially with the most notable leases in the 3rd quarter were 10,000 SF-25,000 SF

Challenges:

  • Every industry is different and every company is different when determining hybrid work schedules [if any]. Gaging top performing employees and where the most ideal employees you plan on recruiting live, will assist office site selection.
  • Class A rents across all submarket will continue to increase as supply tightens.
  • Companies who have part time or full time office policies and do not have their office among highly amenitized and quality buildings,  could negatively impact recruiting abilities for employees to seek more favorable location and atmosphere if they are required to be in office.

Considerations:

  • Due to low vacancy in a submarket like Tampa CBD, allow plenty of lead time before a lease ends is vital when considering a relocation or expansion.
  • Evaluating submarkets outside of Westshore or Tampa CBD, will provide more favorable rental rate and lease terms. 
  • If Tenants are finding themselves in place of uncertainty for their office space, Coworking solutions have become very common in Tampa Bay, providing a mix of individual offices and conference rooms to be used for monthly and quarterly meetings.
  • Tenants who want to subleasing their space, positioning the space below market rent and free rent will position the space to be the frontrunner with competitors. 

What does this mean for Landlords?

Opportunities:

  • Class A buildings are experiencing the most leasing activity. If a building is not Class A, consider adding features Tenants find valuable.
  •  Outlying areas such as Northwest Tampa and outside of Westshore and the CBDs, have the opportunity to capture Tenant’s who have been priced out.

Challenges:

  • Buildings located in suburban corridors like the Northwest and i-75 are experiencing the highest vacancy rates with companies minimizing their office footprints and focusing on prime locations.

Considerations:

  • Landlord’s in high vacancy areas, can offer additional incentives for Tenants with shorter lease terms, higher Tenant Improvement allowance and rent abatement to incentivize companies to consider a building and location they typically would not.
  • Frequency of office space use and operational layouts are being reimagined and repurposed, consider providing conference room space for Tenants who only need use of a conference room on a monthly or quarterly basis.
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2nd Quarter 2025 Tampa Bay Office Market Report and Forecast

Economic Economic Performance & Employment Trends:

Key Metrics in the Office Market:

  • Tampa’s average asking rents over all classes have edged up 2.3% year-over-year, driven primarily by a 4% increase in Class A rates, compared to just a 1% bump for Class B assets. The pricing differential between urban and suburban Class A properties continues to widen.
  • Majority of leasing activity occurred in Class A buildings in Tampa CBD, which was primarily responsible for vacancy compression
  • Overall vacancy ended at +/- 19.5% with Class A buildings at +/- 14.6%
  • Q2 ended in positive absorption of +/- 175,000 SF, up from the negative absorption in Q1 and one of the highest in the past 5 years.

Let’s Talk Rent Numbers:

SubmarketOverall Average Asking Rent-All ClassesOverall Asking Rent Class A
Westshore$36.00 Sq. Ft.$42.66 Sq. Ft.
Downtown Tampa$42.80 Sq. Ft.$45.40 Sq. Ft.
Northwest Tampa$26.57 Sq. Ft.$27.56 Sq. Ft.
South Tampa$52.00 Sq. Ft.N/A
I-75 Corridor$25.00 Sq. Ft.$26.00 Sq. Ft.
Downtown St. Petersburg$39.55 Sq. Ft.$44.35 Sq. Ft.

New Construction Pipeline:

  • Midtown East: The Primary new office construction of 85,000 SF is the second phase of Midtown Tampa, mixed use project located in the heart of Tampa. 50,000 SF has already been preleased.
  • Ybor: 95,000 SF for Grow Financial in Ybor broke ground

2025 3rd Quarter Forecast:

What does this mean for Tenants?

Advantages:

  • Companies who desire to be in suburban areas such as Northwest Tampa in near Hillsborough Avenue/ Veterans Expressway and Carrollwood and I-75 Corridor,  have more negotiating leverage on rental rate and lease concessions due to the higher vacancy rates in buildings.
  • Tenants in the 10,000 + Square Foot range have a stronger position across all Submarkets when negotiating with Landlords.

Challenges:

  • Flexible work schedules with a mix of in office and work from home, continues to be a work in progress as companies evaluate what is best for their team. Every industry is different and everyone company is different.
  • Class A rents are forecasted to continue to increase
  • The continued shift of focusing on strategic office location with surrounding amenities and environment that compel employees to want to come into the office can drive companies to the same Submarkets and buildings, creating vacancies in less desirable buildings and competition in others.

Considerations:

  • Due to low vacancy in a submarket like Tampa CBD, allow plenty of lead time before a lease ends is vital when considering a relocation or expansion.
  • Evaluating submarkets outside of Westshore or Tampa CBD, will provide more favorable rental rate and lease terms. 
  • If Tenants are finding themselves in place of uncertainty for their office space, Coworking solutions have become very common in Tampa Bay, providing a mix of individual offices and conference rooms to be used for monthly and quarterly meetings.
  • Tenants who want to subleasing their space, positioning the space below market rent and free rent will position the space to be the frontrunner with competitors. 

What does this mean for Landlords?

Opportunities:

  • Landlords with buildings located in Downtown Tampa Core or Westshore Business District, with onsite and nearby amenities should experience the most leasing activity and ability to be more selective when evaluating Tenants.
  • Tenant’s who have experienced the dramatic rent increases and leases are coming up for renewal, could now be priced out of Tampa CBD or Westshore. Outlying areas such as Northwest Tampa, may benefit. 

Challenges:

  • Buildings located in suburban corridors like the Northwest and i-75 are experiencing the highest vacancy rates with companies minimizing their office footprints and focusing on prime locations.

Considerations:

  • Landlord’s in high vacancy areas, can offer additional incentives for Tenants with shorter lease terms, higher Tenant Improvement allowance and rent abatement to incentivize companies to consider a building and location they typically would not.
  • Frequency of office space use and operational layouts are being reimagined and repurposed, consider providing conference room space for Tenants who only need use of a conference room on a monthly or quarterly basis.