Tampa Office Market
Annual full-service asking rental rates reached a new high at $29.72/SF, reflecting a 2.6% increase year over year at the end of the fourth quarter of 2024. Vacancy rates remained relatively flat, reporting a 20 basis points decrease quarter over quarter but a 20 basis points increase year over year. The under-construction pipeline continues to remain muted in the market, with 518,929 SF under construction, accounting for just 0.8% of the market’s inventory. Leasing activity ended the quarter at 1.1 MSF, significantly lagging the 16-year third-quarter quarterly average of 1.4 MSF and reflecting a decrease of 29.1% year over year.
Download Tampa Office Market 4Q24Tampa Industrial Market
The market reported 286,796 SF of positive absorption in the fourth quarter of 2024, the second lowest quarterly occupancies since 2013. Overall, the year end at 3.3 MSF of net absorption. Overall rental rates declined from the historical high in year-end 2023 by 13.1% to $7.59/SF but continued to remain elevated, despite reflecting negative yearly growth.
Construction pipeline recorded 1.8 MSF of deliveries as of the end of the fourth quarter of 2024. Meanwhile, under construction declined to 5.9 MSF, continuing a downward trend since reaching a recent high of 11.6 MSF in the third quarter of 2022, reflecting the third consecutive quarter of decline. Following yearly supply outpacing demand, vacancy increased by 100 basis points year over year to 7.7%. Landlords leased a large amount of bulk space over the past years, improving the bulk-space segment that had been dragging down the market.