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 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.