Tampa Office Real Estate Market Report – Q4 2025

Tampa Office Real Estate Activity Highlights: Q4 2025

The Tampa office market has exhibited a distinct divergence across asset classes over the past few years. Demand for 4 & 5 Star properties remains robust, with these top-tier buildings capturing most of the market’s leasing activity and positive absorption. In contrast, mid-and lower-tier properties, classified as 1 & 2 Star and 3 Star, continue to see net tenant losses, driving negative trends in overall market performance.

Over the past year, Tampa has recorded -350,000 SF of absorption, in large part due to the performance of low- to mid-tier properties. Conversely, 4 & 5 Star assets posted 400,000 SF of absorption during the same period.

Over the first three quarters of the year, leasing activity totaled 5.7 million SF, with just under half comprised of transactions in 4 & 5 Star properties. Fisher Investments, Footlocker, Holland & Knight, and American Integrity Insurance committed to 660,000 SF of new space in 4 & 5 Star buildings in 25Q1. GEICO also leased 190,000 SF in three 3 Star buildings in Westshore. Midtown East also secured roughly 50,000 SF in leasing activity with TeamViewer and a major accounting consulting firm, both leasing a full floor in the third quarter.

While some tenants are relocating from existing spaces, these transactions are expected to generate continued positive absorption in the high-end cohort over the coming quarters. Enhanced leasing momentum in 4 & 5 Star properties has been seen throughout the Tampa region, even in secondary suburban submarkets such as Gateway, Northwest Tampa, and East Tampa.

Market participants have indicated that the overall sentiment for Tampa’s office market has improved considerably because of these leases, in large part due to them taking some large blocks of second-generation, suburban office vacancies off the market.
Market vacancy rates have increased modestly over the past year, now standing at 15.6%. This uptick is due to the negative absorption seen so far this year, coupled with the delivery of Midtown East in April. At 430,000 SF, it is the largest new office building to be delivered in Tampa since Thousand & One Water Street in 2021. Midtown East, owned by Highwoods, currently only has 25,000 SF available for lease.

Annual rent growth stands at 4.0%, outpacing the national average of 1.1% but remaining below pre-pandemic norms of 5-6%. This moderation is primarily due to limited leasing velocity in low and mid-tier properties. Many of which have large blocks of space that have been on the market for several years, with landlords more apt to drop rates than push them. The divergence in performance based on asset class is likely to continue. Poor performance in low- to mid-tier properties could weigh on overall fundamentals over the near term. As more desirable, high-quality space is leased, the positive momentum seen there will be unlikely to offset the tenant losses and rent growth stagnation seen in low- to mid-tier office properties.

You can view our commercial properties in Tampa and elsewhere in Central Florida to see what real estate assets are available for lease / sale.

Tampa Office Real Estate Stats Highlights Q3 2025

Below are some key statistics for the office market in Tampa over the last quarter: cap rate, absorption, vacancy rate, and the current asking rate per square foot.

• Cap Rate: 7.1%
• Absorption: -349K SF
• Vacancy Rate: 9.9%
• Asking Rate / SF: $31.74

Tampa Office Real Estate Stats Overview – Last 12 Months

Over the last 12 months, the total deliveries of completed Tampa office real estate space is 610K square feet, while there has been an aggregated absorption of (349K) square feet. The current vacancy rate of office space in the area is 9.9%, and the rental rate has grown 4.0% total during the same time. To give some context, Tampa’s office vacancy rate is below the historical average of 9.8%.

• 12 Month Deliveries (in SF): 874,000
• 12 Month Absorption (in SF): (349,000)
• Vacancy Rate: 9.9%
• 12 Month Rent Growth: 4.0%

Tampa Office Real Estate Sales Summary for Q4 2025

Office sales activity remained below pre-pandemic norms in 2024, with the Tampa market recording just $800 million in total sales volume. By comparison, current investment volumes are well below the five-year average of $1.0 billion. Pricing has mostly plateaued over the past year around $184, and very few trades have been cap-rate-driven in the Tampa market. The vast majority of sales have been smaller owner-user transactions, with only a dozen trades for over $10 million in 2024.   

Tampa Florida Significant Office Property Sales for Q4 2025

Office sales activity remains below pre-pandemic norms in Tampa, with the market recording just $1.2 billion in total sales volume over the past year. Hospital groups continue to actively purchase traditional and medical office buildings in the region to capture market share.

Tampa General Hospital acquired 17 Davis Boulevard from Healthcare Realty in September for $22 million, or $187/SF. USF Health, with which Tampa General has a partnership, recently opened an acute care clinic and is one of the largest tenants in the building. In addition, AdventHealth purchased the University Professional Center, a 101,000-square-foot multi-tenant medical office building located less than a mile from AdventHealth Tampa Hospital. The 1970s vintage building was recently renovated and traded at a 9.3% cap rate.

The trend of industrial or multifamily developers purchasing office buildings is gaining momentum in the Tampa market. In East Tampa, an East Group purchased a 66-acre corporate campus previously occupied by Progressive Insurance for $32 million, or roughly $485,000/acre. The three-building campus will be demolished to make way for a multi-building, 550,000-square-foot industrial park. In Downtown Tampa, Stock Development purchased 601 N Ashley Drive for $40 million. The transaction included the plans and approvals for the redevelopment of the site to up to 960,000 SF, including a 43-story apartment tower with 480 units and 916 parking spaces.

Pricing has largely plateaued here at around $197/SF, and very few office transactions are driven by cap rates. Market participants have indicated that there is limited investment demand for traditional office product. While there may be a few larger transactions, this market is more likely to see industrial or multifamily developers buying office buildings for redevelopment than widespread office investment over the coming quarters.

• Sales Comparables: 639
• Average Cap Rate: 7.1%
• Average Price / SF: $184
• Average Vacancy During Sale: 10.8%

Here are the Top 5 Tampa Office Property sales during the last 12 months:

1) LakePointe 2 – 3111 W Dr Martin Luther King Jr Blvd
Rating: 4*
Building SF: 223,644
Year Built: 2000
Vacancy: 24.9%
Sale Date:2/3/2025
Price: – $59,424,908
Price/SF: $266

Office Space Under Construction in Tampa Q4 2025

Here are the top stats for office properties currently under construction in Tampa, FL. From the 15 properties under construction, there is a total of 303,084 square feet being added to the market, which represents 0.2% of the total market. 53.5% of the under-construction space is preleased.

• Total Properties Under Construction: 15
• Total Square Feet Being Built: 303,084
• % of Inventory Under Construction: 0.2%
• Preleased: 53.5%

Here are the top office real estate assets under construction in the Tampa market.

1) E2 – Grow Financial Place – 1301 4th Ave
Rating: 4*
Building SF: 106,338
Stories: 6
Start: Mar 2025
Complete: Apr 2026
Developer/Owner: Darryl Shaw

5) 3535 McMullen Booth Rd
Rating: 3*
Building SF: 18,000
Stories: 1
Start: June 2025
Complete: June 2026
Developer/Owner: F&M Development

Take a look at our featured Tampa office real estate spaces, or other Tampa commercial real estate properties here, or contact the Bounat team to start your own search for properties in the area. 

* Data is courtesy of CoStar Group Inc.