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Tampa's downtown office market continues to benefit from a lack of new inventory and job and population growth that has outpaced much of the state over the past several years.
An analysis of CoStar Property data from the first quarters of 2016 and 2017 shows Class A vacancy has declined by nearly 200 basis points, while central business district rents have increased by 14.6% over the same period.
And while high-profile sales and leases have diminished over the past year, as compared to activity downtown during the latter half of 2015 and the beginning of 2016, Tampa remains a robust market for investors. The second half of 2017 could see increased transactional volume based on the steady momentum, analysts contend.
Overall, Tampa's central business district has a 9.3% vacancy rate, while rents ended the first quarter of this year at $26.16 per square foot, according to CoStar statistics.
$28.10
Per square foot rental rate for downtown Tampa Class A office buildings as of March 31, 2017, vs. $24.52 at the same point in 2016.
11.2%
Class A vacancy in Tampa CBD's 13 buildings, which comprise 5.3 million square feet, at the end of the first quarter of 2017. A year ago, the rate was 13%.
14,740
Square footage of the largest lease executed in the first quarter of this year in the Tampa area. OSG Ship Management Inc. renewed a commitment for its space in Two Harbour Place, at 302 Knights Run Ave., on Harbour Island. The submarket's largest office lease, by comparison, was for 60,000 square feet.
338,579
Total amount of positive absorption, measured in square feet, in the first quarter of 2017 in the Tampa and St. Petersburg office submarkets combined. One year ago, 690,837 square feet was absorbed in the first quarter.
9.3%
Total office vacancy for the Tampa central business district submarket, comprising 118 buildings and 9.6 million square feet, as of March 31.
$26.16
Average office rental rate for the entire downtown Tampa submarket as of March 31.
7.6%
Total office vacancy for the entire Tampa and St. Petersburg submarket, comprising 13,340 buildings and more than 151.1 million square feet. A decade ago, the rate was 9.2%.
$20.32
Average office rental rate for the entire Tampa and St. Petersburg submarket as of March 31. A decade ago, the rate was $21.13 per square foot.
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