loader loader
Dec, 12

Tampa Office Real Estate Market Report

Tampa Office Real Estate Activity Highlights 2021/2022

Tampa’s office real estate market has posted roughly $1.3 billion in sales volume over the past 12 months with a high sale of $120,000,000 and an average of $2,609,317 / sale. Total sales activity was led by a robust Q4 2021, which accounted for nearly half of the sales volume, $600 million total. It also represented the third-highest quarterly volume ever transacted in Tampa and the highest since Q3 of 2015. The office real estate cap rates continue to compress, tightening yields for investors, but sits at a healthy 6.8% currently.

As of Q3 2022, market cap rates were notably above the U.S. average at 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. In Q3 2022, the Wells Fargo Center (100 S Ashley Dr) sold for a total of $120M at a final value of $305 / square foot.

In Q3 2022 there was also the sale of the Tampa PainRelief Center (2333 W Hillsborough Ave). It’s a building with 55,000 square feet of office space that sold for $28M, or $509 / square foot.

Another significant sale to mention that took place during the calendar year is the trade of the recently delivered, two-building Heights Union development to Atlanta-based Cousins Properties. TPA Group sold the pair of buildings, which totaled 294,000 SF, for $144.8 million ($493/SF) at a cap rate of 3.2%. The buildings, completed in late 2020, were 93% occupied with life science tenants including Pfizer and Axogen accounting for nearly 70% of the building’s leased space.

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 Q3 2022 - Bounat

Tampa Office Real Estate Stats Highlights Q3 2022

Over the last 12 months, the total deliveries of completed office real estate space is 341K square feet, while there has been an aggregated absorption of -405K square feet. The current vacancy rate of office space in the area is 9.1%, and the rental rate has grown 4.5% total during the same time. To give some context, Tampa’s office vacancy rate is below the national average of 12.5% overall.

12 Month Deliveries (in SF): 341,000
12 Month Absorption (in SF): -405,000 
Vacancy Rate: 9.1%
12 Month Rent Growth: 
4.5%

 

Tampa Florida Significant Office Property Sales for Q3 2022

Here are the top office real estate sales statistics in Tampa, FL.

Sales Comparables: 747
Average Cap Rate: 6.8%
Average Price / SF: $223
Average Vacancy During Sale: 11.8%

Let’s take a look at the Top 10 Office Property sales during the last 12 months leading into the final stretch of 2023.

1. Wells Fargo Center – 100 S Ashley Dr

Rating: 4* 

Bldg SF: 393,649

Year Built: 1985

Vacancy: 17.7%

Sale Date: 8/11/2022

Price: $120,000,000

Price/SF: $305

 

2. Crosswynde – 1502 Marsh Cove Ct

Rating: 3* 

Bldg SF: 346,585

Year Built: 2001

Vacancy: 0%

Sale Date: 1/13/2022

Price: $82,564, 900

Price/SF: $238

 

3. 5525 W Gray St

Rating: 4* 

Bldg SF: 138,093

Year Built: 2005

Vacancy: 0%

Sale Date: 5/19/2022

Price: $70,350,000

Price/SF: $509

 

4. Florida Blue Tower/Airport – 2203 N Lois Ave

Rating: 3* 

Bldg SF: 238,325

Year Built: 1985

Vacancy: 16.6%

Sale Date: 10/27/2021

Price: $55,750,000

Price/SF: $234

Cap Rate: 6.3%

 

5. Women’s Care Florida – 5016 W Cypress St

Rating: 3* 

Bldg SF: 63,289

Year Built: 2017

Vacancy: 0%

Sale Date: 4/14/2021

Price: $39,263,000

Price/SF: $620

 

6. Women’s Care Florida – 515 S Kings Ave

Rating: 3* 

Bldg SF: 60,000

Year Built: 2019

Vacancy: 0%

Sale Date: 6/1/2022

Price: $39,000,000

Price/SF: $650

 

7. Highwoods Preserve V – 18205 Crane Nest Dr

Rating: 4* 

Bldg SF: 174,883

Year Built: 2001

Vacancy: 57.2%

Sale Date: 11/9/2021

Price: $30,350,000

Price/SF: $174

 

8. Tampa PainRelief Center – 2333 W Hillsborough Ave

Rating: 3* 

Bldg SF: 55,000

Year Built: 1979

Vacancy: 100%

Sale Date: 8/2/2022

Price: $28,000,000

Price/SF: $509

Cap Rate: Not Listed

 

9. 6550 W Hillsborough Ave

Rating: 4* 

Bldg SF: 161,455

Year Built: 1999

Vacancy: 68.2%

Sale Date: 5/2/2022

Price: $27,300,000

Price/SF: $169

 

10. Brandon Gateway Medical – 560 S Lakewood Dr

Rating: 4* 

Bldg SF: 55,167

Year Built: 2018

Vacancy: 5.2%

Sale Date: 12/23/2021

Price: $25,480,000

Price/SF: $462

 

Office Space Under Construction in Tampa Q3 2022

 

Here are the top stats for under construction office properties in Tampa, FL.

Total Properties Under Construction: 26
Total Square Feet Being Built: 566,549
% of Inventory Under Construction: 0.4%
Preleased: 62.8%

 

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

 

1. BayCare Medical Arts Building  – Bruce B Downs Boulevard

Rating: 4*

Building Sq Ft: 80, 000

Stories: 3

Start: January 2021

Complete: January 2023

 

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

Rating: 3*

Building Sq Ft: 80,000

Stories: 6

Start: July 2021

Complete: Jan 2023

Developer: Not Listed

Owner: Not Listed

 

3. 10050 N Florida Ave

Rating: 4*

Building Sq Ft: 75,000

Stories: 3

Start: March 2021

Complete: November 2021

 

4. 54 Crossings • South Building

17919 State Road 54

Rating: 4*

Building Sq Ft: 60,000

Stories: 3

Start: August 2021

Complete: August 2022

Developer: Colwell Avenue Properties LLC

Owner: Rizzetta & Company

 

5. ARK Innovation Center – 17907 Aprile Dr

Rating: 4*

Building Sq Ft: 45,000

Stories: 2

Start: February 2022

Complete: July 2023

 

6. Dunedin City Hall – 737 Louden Ave

Rating: 3*

Building Sq Ft: 39,000

Stories: 2

Start: June 2021

Complete: November 2022

Owner: City of Dunedin

 

7. 4th & Co – 16703 Early Riser Ave

Rating: 3*

Building Sq Ft: 38,000

Stories: 2

Start: August 2021

Complete: November 2022

Owner: Newland

 

8. 8527 Land O Lakes Blvd

Rating: 3*

Building Sq Ft: 26,300

Stories: 1

Start: October 2022

Complete: May 2023

Owner: Connerton Medical Center

 

9. 1104 N Howard Ave

Rating: 4*

Building Sq Ft: 21,900

Stories: 3

Start: August 2020

Complete: December 2022

Developer: Not Listed

Owner: Not Listed

 

10. Casa Gomez – 1205 E 8th Ave

Rating: 3*

Building Sq Ft: 19,329

Stories: 5

Start: August 2020

Complete: December 2022

Owner: Not Listed

 

 

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