Tampa-St. Petersburg Office Market Report

Urban core office demand is relatively uninhibited. Entering April 2023, Central Tampa had registered a positive net absorption figure exceeding 150,000 square feet in three of the past four quarters. This activity lowered vacancy by 190 basis points year-over-year, ranking as the third-largest contraction among major U.S. market’s urban cores during that span. Cybersecurity firms ReliaQuest and Rapid7 moved into 120,000-square-foot and 42,000-square-foot spots, respectively, in the CBD during the first quarter. Law firm Shumaker also extended its downtown commitment by renewing a 61,000-square-foot lease for 10-plus years in January. Modest development is helping preserve momentum as well. Builders added just 34,000 square feet of CBD space during 2022, after finalizing at least 350,000 square feet in each of the prior three years. The only major project scheduled to arrive in Central Tampa during 2023 is fully leased by CAE USA, Inc. for a new headquarters in Westshore.