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Nov, 7

Tampa Office Real Estate Market Report

Tampa Office Real Estate Activity Highlights 2023

Tampa’s office real estate market has posted roughly $1.3 billion in sales volume over the past 12 months. It’s now been over a year since the massive splash sale of The Wells Fargo Center for $120,000,000 in Q3 2022, which was nearly twice as much as the current biggest sale over the last twelve months.

The office real estate cap rates continue to compress, tightening yields for investors, but sits at a healthy 7.0% currently. As of Q3 2023, market cap rates are a bit above the national cap rate in the office real estate at around 6%; however, the market cap rates for 4 & 5 Star properties are closer to the national benchmark. Investors keeping their eyes on longer-term opportunities continue to invest in the urban core of Tampa, FL.

Total sales activity started off with a very strong start to the year with 6 of the top 10 sales taking place in Q1 and Q2 2023. The biggest sale in Q2 2023 was 2 Urban Centre (4890 W Kennedy Blvd), which sold for $62.4M at a price of $231 / square foot.

It’s also important to note that the top 12 Tampa office property sales over the course of the last 12 months were sold for at least $20M. It will be interesting to see if this high sales volume continues through Q4 2023 as the year comes to a close.

 

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 Report (Q3 2023 Blog) - Boutique National CRE

Tampa Office Real Estate Stats Highlights Q3 2023

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: 7.0%
Absorption:
-151,199 SF
Vacancy Rate:
9.2%
Asking Rate / SF:
$28.72

 

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 385K square feet, while there has been an aggregated absorption of 22.3K square feet. The current vacancy rate of office space in the area is 9.2%, and the rental rate has grown 3.7% total during the same time. To give some context, Tampa’s office vacancy rate is below the national average of nearly 13% overall.

12 Month Deliveries (in SF): 385,000
12 Month Absorption (in SF): 22,300
Vacancy Rate: 9.2%
12 Month Rent Growth: 
3.7%

 

Tampa Florida Significant Office Property Sales for Q2 2023

Here are the top office real estate sales statistics in Tampa, FL from a total of 485 sales comparables. The average cap rate of these sales was 7.0% with an average price per square foot of $203. The properties were sold with an average vacancy of 13.5%.

Sales Comparables: 485
Average Cap Rate: 7.0%
Average Price / SF: $203
Average Vacancy During Sale: 13.5%

 

Here are the Top 10 Tampa Office Property sales during the last 12 months:

1. 2 Urban Centre

Rating: 4*
Bldg SF: 270,639
Year Built: 1984
Vacancy: 20.0%
Sale Date: 5/12/2023
Price: $62,410,476
Price/SF: $231

 

2. 1 Urban Centre – 4830 W Kennedy Blvd

Rating: 4*
Bldg SF: 269,859
Year Built: 1984
Vacancy: 22.5%
Sale Date: 5/12/2023
Price: $60,589,524
Price/SF: $225

 

3. James A Haley VA – 13515 Lake Terrace Ln

Rating: 3*
Bldg SF: 117,037
Year Built: 2014
Vacancy: 0%
Sale Date: 1/12/2023
Price: $55,100,000
Price/SF: $471

 

4. Bridgeport Center – 5201 W Kennedy Blvd

Rating: 4*
Bldg SF: 180,247
Year Built: 1980
Vacancy: 4.4%
Sale Date: 02/23/2023
Price: $40,000,000
Price/SF: $222
Cap Rate: 7.4%

 

5. 16400 State Road 54

Rating: 3*
Bldg SF: 164,377
Year Built: 2006
Vacancy: 0%
Sale Date: 10/25/2022
Price: $39,490,000
Price/SF: $240

 

6. Tampa Medical Tower – 2727 W Martin Luther King Blvd

Rating: 3*
Bldg SF: 115,708
Year Built: 1984
Vacancy: 4.9%
Sale Date: 03/10/2023
Price: $31,500,000
Price/SF: $272

 

7. 6302 Corporate Center

Rating: 2*
Bldg SF: 350,000
Year Built: 1985
Vacancy: 21.2%
Sale Date: 1/18/2023
Price: $31,000,000
Price/SF: $89
Cap Rate: 10.3%

 

8. 200 Carillon Pky

Rating: 4*
Bldg SF: 157,755
Year Built: 2000
Vacancy: 0%
Sale Date: 11/16/2022
Price: $29,500,000
Price/SF: $187

 

9. 5002 Waters Ave

Rating: 4*
Bldg SF: 117,335
Year Built: 2003
Vacancy: 0%
Sale Date: 2/2/2023
Price: $26,440,000
Price/SF: $225
Cap Rate: Not Listed

 

10. Gasworks – 1400 Channelside Dr

Rating: 3*
Bldg SF: 27,325
Year Built: 1972
Vacancy: 0%
Sale Date: 12/9/2022
Price: $25,324,100
Price/SF: $927

 

 

Office Space Under Construction in Tampa Q3 2023

Here are the top stats for office properties currently under construction in Tampa, FL. From the 34 properties under construction there is a total of 1,092,342 square feet being added to the market, which represents nearly 1% of the total market.

Total Properties Under Construction: 34
Total Square Feet Being Built: 1,092,342
% of Inventory Under Construction: 0.9%
Preleased: 75.4%

 

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

1. Midtown East – 1 Midtown Pl

Rating: 5*
Building Sq Ft: 428,292
Stories: 18
Start: January 2023
Complete: January 2025
Developer: The Bromley Companies
Owner: Highwoods Properties Inc

 

2. CAE USA Headquarters – Air Cargo Rd

Rating: 5*
Building Sq Ft: 290,000
Stories: 3
Start: June 2022
Complete: November 2023
Owner: CAE USA

 

3. BayCare Medical Office- N Park Rd & E Sam Allen Rd 

Rating: 3*
Building Sq Ft: 80,000
Stories: 6
Start: July 2021
Complete: June 2024
Developer: Not Listed
Owner: BayCare Health Systems, Inc

 

4. ARK Innovation Center – 1101 4th St S

Rating: 4*
Building Sq Ft: 45,000
Stories: 2
Start: February 2022
Complete: November 2023

 

5. 10521 Bloomingdale Dr

Rating: 3*
Building Sq Ft: 40,000
Stories: 2
Start: Mar 2023
Complete: February 2024
Developer / Owner: Professional Office Developers / Lakshmi Immadi

 

6. 607 S Kings Ave

Rating: 3*
Building Sq Ft: 40,000
Stories: 2
Start: March 2023
Complete: February 2024
Owner: Harrod Properties

 

7. 8527 Land O Lakes Blvd

Rating: 3*
Building Sq Ft: 26,300
Stories: 1
Start: February 2022
Complete: November 2023
Owner: Connerton Medical Center

 

8. Premier Community Health Center – 5955 Rowan Rd

Rating: 4*
Building Sq Ft: 23,000
Stories: 1
Start: July 2022
Complete: November 2023
Owner: Not Listed

 

9. Casa Gomez – 1205 E 8th Ave

Rating: 3*
Building Sq Ft: 20,012
Stories: 5
Start: April 2022
Complete: November 2023
Owner: Not Listed

 

10. Building 2 – 3341 – 3343 W Fletcher Ave

Rating: 4*
Building Sq Ft: 9,000
Stories: 1
Start: April 2023
Complete: December 2023
Owner: Not Listed

 

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.