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Feb, 28

Tampa Office Real Estate Market Report

Tampa Office Real Estate Activity Highlights 2023

Tampa’s office real estate market has posted over $1 billion in sales volume over the past 12 months. The biggest sale over the past 12 months is the combination of 1 Urban Centre and 2 Urban Centre (4830 & 4890 W Kennedy Blvd), which total over $120M and over 500K square feet of office space.

The office real estate cap rates continue to compress, tightening yields for investors, but sits at a healthy 7.0% currently. As of Q4 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 2023 with 9 of the top 10 sales taking place in Q1 and Q2 2023. There is only one top 10 sale in the second half of 2023, the Sabal Pavilion 1 (3620 Queen Palm Dr) for $22 million. 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 $19.5. 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 Q4 2023 - Boutique Naitonal CRE 2024

Tampa Office Real Estate Stats Highlights Q4 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:
-163,873 SF
Vacancy Rate:
9.2%
Asking Rate / SF:
$29.37

 

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 465K square feet, while there has been an aggregated absorption of 105K square feet. The current vacancy rate of office space in the area is 9.2%, and the rental rate has grown 3.1% 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): 465,000
12 Month Absorption (in SF): 105,000
Vacancy Rate: 9.2%
12 Month Rent Growth: 
3.1%

 

Tampa Florida Significant Office Property Sales for Q4 2023

Here are the top office real estate sales statistics in Tampa, FL from a total of 480 sales comparables. The average cap rate of these sales was 7.0% with an average price per square foot of $190. The properties were sold with an average vacancy of 13.2%.

Sales Comparables: 480
Average Cap Rate: 7.0%
Average Price / SF: $190
Average Vacancy During Sale: 13.2%

 

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. 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%

 

4. 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

 

5. 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%

 

6. 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

 

7. Sabal Pavilion 1 – 3620 Queen Palm Dr

Rating: 4*
Bldg SF: 120,500
Year Built: 1998
Vacancy: 25.0%
Sale Date: 12/20/2023
Price: $22,000,000
Price/SF: $183

 

8. Carrollwood Medical Office – 6919 N Dale Mabry Hwy

Rating: 4*
Bldg SF: 53,685
Year Built: 2012
Vacancy: 0%
Sale Date: 2/9/2022
Price: $20,725,000
Price/SF: $187

 

9. The Pointe at 1901 – 1901 Ulmerton Rd

Rating: 3*
Bldg SF: 158,000
Year Built: 1999
Vacancy: 44.4%
Sale Date: 3/9/2023
Price: $19,600,000
Price/SF: $124

 

8. Independence Park I – 4110 George Rd

Rating: 4*
Bldg SF: 115,740
Year Built: 1983
Vacancy: 0%
Sale Date: 5/20/2023
Price: $19,525,000
Price/SF: $169
Cap Rate: 7.9%

 

Office Space Under Construction in Tampa Q4 2023

Here are the top stats for office properties currently under construction in Tampa, FL. From the 29 properties under construction there is a total of 1,026,374 square feet being added to the market, which represents nearly 1% of the total market.

Total Properties Under Construction: 29
Total Square Feet Being Built: 1,026,374
% of Inventory Under Construction: 0.8%
Preleased: 75.7%

 

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. 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

 

5. 607 S Kings Ave

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

 

6. 8527 Land O Lakes Blvd

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

 

7. Casa Gomez – 1205 E 8th Ave

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

 

8. Biolife Plasma Services – 6821 W Waters Ave

Rating: 2*
Building Sq Ft: 14,545
Stories: 1
Start: July 2023
Complete: February 2024
Owner: Build to Suit, Inc

 

9. Building 2 – 3341 – 3343 W Fletcher Ave

Rating: 4*
Building Sq Ft: 9,000
Stories: 1
Start: April 2023
Complete: February 2024

 

10. Building 1 – 3331 – 3333 W Fletcher Ave

Rating: 3*
Building Sq Ft: 9,000
Stories: 1
Start: April 2023
Complete: March 2024

 

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.