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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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Why You Need A Commercial Real Estate Broker To Represent You, Even When You Know The Landlord

Venturing into a new office space lease can feel intimidating. There are so many questions you may have, concerns about things unknown. That’s why having a Commercial Real Estate Broker working on your side is crucial to a successful journey in finding your next office space for rent in Tampa.

Landlords will always have their best interest in mind as the owner and investor of the building. Brokers, on the other hand, are working with your best interest in mind. Even when you have a good working relationship with the Landlord, they are still focused on protecting themselves and their property first and foremost at the end of the day. You could be in a position of thinking you are getting a pretty good deal on your lease and your commercial property for rent in Tampa but are you really? Here are a few things to consider:

Are you aware of current marketing conditions, concessions by Landlords and standard business terms? 

Do you have comparisons to a deal on the table with other possible small office space for rent in Tampa?

When you have concerns about a potential space, who is going to give you honest feedback and real insight about what will work best to meet your real estate needs?

When you don’t have the full overview of the Tampa Bay real estate market, it’s nearly impossible to really get the best possible lease. That’s why having the right Broker can educate you on the market as a whole and advise on business points they are experiencing and seeing at competing properties. Understanding what is a market norm is very important in negotiating a commercial lease and choosing which Landlord to have a long-term business relationship. 

Commercial Real Estate Brokers are also skilled in negotiating terms. They will seek to get you the office space of your dreams with a lease and terms that are not full of deal breaking concessions. Your Broker will help ensure that you are not paying exorbitant Common Area Expenses, hidden fees and other thumbs-down terms but instead that you are treated to a fair lease with all the amenities, parking spaces and square footage you need.

When you need an office space, you need Office Space Brokers.

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Basics you must know about a Modified Gross Lease

A Modified Gross Lease is a type of lease agreement that is commonly used in commercial real estate for office space. It is a hybrid between a Full Service lease and a Triple Net lease, which allows for some flexibility in terms of which party is responsible for certain expenses associated with the property. In a Modified Gross Lease, the Landlord and Tenant share some of the costs associated with the property, while others are the sole responsibility of one party or the other. 

The Tenant’s rents include paying the base rent and the budget expenses including taxes, maintenance, and other operating expenses. The Tenant is responsible for their own electricity and their janitorial cleaning services. Tenants may receive an invoice for their proportionate share (based on their square footage) based on the Landlord’s reconciliation of their annual budget which surpassed the Tenant’s Base Year or expense stop. The Tenant is responsible to pay any increase in those expenses above the Expense Stop amount. These overages should be nominal since these expenses are budgeted by the Landlord. 

The specific terms of a Modified Gross Lease can vary, but generally speaking, the Landlord will be responsible for paying certain expenses related to the property, such as property taxes, insurance, and maintenance. Meanwhile, the Tenant will be responsible for paying for certain utilities, such as electricity and water, as well as any expenses related to their specific use of the property, such as cleaning, HVAC repairs, plumbing within their Suite etc.

Advantages of Modified Gross Lease for Tenants

Flexibility in terms of which party is responsible for certain expenses can be a great advantage for Tenants who may not have the financial resources to pay for all of the expenses associated with a property on their own. By sharing some of these costs with the Landlord, Tenants can reduce their overall expenses and potentially afford a property that would otherwise be out of reach.

Minimize disputes between Landlords and Tenants by clearly defining which expenses are the responsibility of each party, there is less room for misunderstandings or disagreements. This can help to create a more positive and productive relationship between the Landlord and Tenant, which can be beneficial for both parties in the long run.

Disadvantages of Modified Gross Lease for Tenants

There are also some potential drawbacks to a modified gross lease. Monthly office expenses can fluctuate because the Tenant is paying utilities directly. An issue arises when you have fluctuating utilities so you must make sure they have a buffer in their budget when budgeting expenses because the cost can vary each month.

 

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The basics you must know about a Triple Net Lease

Triple Net Lease, also known as NNN lease, is a commercial real estate lease in which the Tenant is responsible for paying for all or some of the property’s Operating Expenses or sometimes called, Common Area Maintenance. These expenses can include property taxes, insurance, maintenance for common areas costs. In a Triple Net lease, the Tenant not only pays rent but also assumes financial responsibility for the upkeep and maintenance of the property. This type of lease is common in commercial real estate, particularly in retail and warehouse spaces and less likely to come across in office space. 

Benefits of Triple Net Leases For Landlords

Landlords can easily project their income stream, as the Tenant is responsible for the expenses associated with the property. There can be years when Real Estate Taxes and Insurance increase, those increased amounts can be passed directly to the Tenants.  Landlords can use this predictable income stream to secure financing for additional real estate investments or to reinvest in the property itself. Tenants being responsible for maintaining the property, Landlords can minimize their involvement in the day-to-day management of the property.

Disadvantages of Triple Net Leases For Landlords

If the Tenant fails to pay for expenses such as property taxes or insurance, the Landlord may have to cover those costs, leading to financial losses. Furthermore, if the Tenant is responsible for maintenance, the Landlord may not be aware of issues that arise, leading to potential property damage that could reduce the property’s value.

Benefits of Triple Net Leases For Tenants

Triple Net leases can provide more control over the property and potentially lower costs since they are responsible for maintenance and repairs by choosing which vendors to use or update themselves. Additionally, since Tenants have more control over the property’s upkeep, they can customize the space to fit their specific needs. This can be particularly advantageous for businesses with unique requirements, such as medical offices or laboratories.

Disadvantages of Triple Net Leases For Tenants

Tenants should also be aware of the potential downsides of Triple Net leases. If the property requires significant maintenance or repairs, the Tenant may be responsible for substantial expenses. Property Taxes and Insurance can fluctuate and subsequently may face higher costs if Property values or Insurance rates increase.

Triple Net leases can benefit Landlords and Tenants. Landlords can secure a stable income stream and minimize their involvement in property management, while Tenants can have more control over the property and potentially lower costs. It is essential for both parties to understand the potential downsides of triple net leases, such as financial risks and increased expenses. As with any real estate transaction, it is crucial to carefully review and negotiate the lease terms to ensure a mutually beneficial arrangement.

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The Rise of Florida Commercial Real Estate Market Trends

Florida's commercial real estate markets poised for continued growth - South Florida Business Journal

 

The Rise of Florida Commercial Real Estate Market Trends

The Commercial Real Estate market in Florida has experienced significant growth and change over the past few years. Due to the state’s favorable business climate, growing population, and low taxes have made it an attractive destination for companies looking to expand or relocate. We will discuss five of the current trends in Florida’s Commercial Real Estate market.

Growth of the Industrial Warehouse Sector

With The rise of e-commerce and online shopping and specifically service-based industries in Florida,  the demand for warehouse and distribution facilities has increased significantly. As a result, developers are building larger and more sophisticated industrial buildings to meet this demand. According to CBRE Florida ranks third in the nation for the total square footage of new industrial construction.

Flight To Quality and Flexible Office Arrangements 

The growth of remote work and the gig economy, many companies are seeking flexible workspace solutions that can accommodate their changing needs. Co-working spaces, which offer shared office space and amenities, have become increasingly popular in Florida’s urban areas. We are calling a “flight to quality” for companies who are choosing to lease office space in locations with buildings that provide amenities for Tenants and located where their ideal employers live, work and play. In Tampa, we are seeing this example in Westshore and Downtown Tampa. 

The Hospitality Sector Has Bounced Back and There Is No Looking Back

Florida’s tourism industry continues to thrive, with record numbers of visitors each year. According to Visit Florida, the state’s official tourism marketing corporation, Florida welcomed a record-breaking 135.5 million visitors in 2022. As a result, developers are building new hotels and resorts to meet the demand. Additionally, there is a growing trend of mixed-use developments that combine hotel, residential, and retail space. In Tampa Bay we have experienced an influx of new restaurants in Downtown Tampa’s Water Street community and Midtown, both mixed use developments which opened their doors to Tenants and patrons in the past two years. 

Retail Isn’t Dead, It Might Look a Little Different Though

Florida’s retail sector has been impacted by the growth of e-commerce, with many brick-and-mortar retailers struggling to compete. Fair to say we will be seeing changes in malls and the reuse of some of the big box Tenants being reimagined to smaller footprints and more experienced focused purposes. 

Florida’s favorable business climate and growing population have created opportunities for retail developers who can provide unique shopping experiences. According to Macro Trends Tampa Bays Population was 2,945,000 in 2022 and currently 2,977,000 in 2023. For example, outdoor shopping centers that offer dining, entertainment, and community events have become popular in Florida’s urban areas. Midtown which is centrally located between Westshore, South Tampa and Downtown Tampa is a prime example of new national retailers and restaurants who have expanded into Tampa Bay. 

Race for Multifamily Developers

Florida’s population is projected to continue to grow, with many young professionals and retirees moving to Florida. As a result, developers are building new apartment buildings and condominiums to meet the demand. Tenant’s are demanding convenience and desiring more than an apartment but built in a community with a small grocery and other day to day needs. No longer are the days where developers are delivering apartment complexes without a retail component for their Tenants.

Florida’s commercial real estate market is evolving to meet the increased demand by population growth plus the lack of existing housing. Florida’s  favorable business climate and low taxes are playing a key role in driving the economy forward. Developers are building larger and more sophisticated industrial buildings, co-working spaces and flexible office arrangements are becoming increasingly popular, and the hospitality, retail, and multifamily sectors are all experiencing growth. As the state’s economy continues to thrive, it is likely that these trends will continue, creating opportunities for real estate investors and developers in Florida.