Historical market overview: March 2025. This article reviews information available when it was originally published, including year-end 2024 office reports and an earlier regional medical office report. These figures do not describe current market conditions.

Tampa Bay entered 2025 with stronger office leasing activity, differences between submarkets, and continued interest in well-located buildings. For office and medical office owners, the practical question was how those broader trends related to their own property.

Tampa Bay Office Leasing Entering 2025

According to CoStar’s January 2025 office market overview, Tampa Bay led Florida in 2024 leasing activity, with approximately 6.6 million square feet leased. The market recorded more than 100,000 square feet of positive absorption, meaning occupied office space increased.

CoStar reported that vacancy had remained around 9.5% for approximately three years. That figure reflects CoStar’s market coverage and should not be treated as interchangeable with vacancy figures from other research providers.

Why Submarket and Building Quality Matter

A January 2025 overview from Cliggitt Valuation reported Westshore vacancy at approximately 12%, a four-year low, while Northeast Tampa vacancy exceeded 15%.

Those differences illustrate why a marketwide average provides only part of the picture. Location, building condition, access, amenities, and competing available space all affect a property’s leasing position.

For landlords, improvements should address the needs of likely tenants. Before committing to renovations or changing asking rent, compare the property with buildings competing for the same occupants.

Office Asking Rents and Tenant Preferences

Colliers’ Q4 2024 report recorded asking rents of $32.08 per square foot across the combined Hillsborough and Pinellas office markets, compared with $30.61 in Q4 2021, an increase of approximately 4.8%.

Colliers also reported stronger tenant interest in Class A space, with Class A vacancy at 9.2% compared with 12.8% for its overall market.

These figures come from a different research dataset than the CoStar figures above. Differences in building coverage and methodology can produce different market totals and vacancy rates.

Asking rent also differs from the income a landlord ultimately receives. Free rent, improvement allowances, operating expenses, and other lease terms affect the economics of a transaction.

Medical Office: Regional Context

The original article referenced Matthews’ February 2024 Florida medical office report. Its West and Southwest Florida section covered a broader region, including St. Petersburg, Lakeland, Bradenton, Sarasota, Port Charlotte, and Fort Myers.

That regional report listed medical office market rent at $26.68 per square foot, average annual rent growth of approximately 4% over the preceding decade, inventory of 47.5 million square feet, and 376,000 square feet under construction.

These were regional figures from an earlier reporting period, rather than a Tampa-only medical office snapshot for 2025.

When evaluating a medical office property, relevant comparisons should account for its location, clinical improvements, patient access, parking, tenant requirements, and lease structure.

Development Plans Discussed at the Time

Midtown East was part of the development pipeline discussed in the original article. The approximately 430,000-square-foot office project was expected to deliver in early 2025. That was the anticipated timing when this article was published.

Gasworx was another development to watch. Plans for the approximately 50-acre mixed-use project included 500,000 square feet of office space and connections between Ybor City and nearby downtown districts.

In February 2025, WUSF reported that the developers secured a $182 million loan to advance construction on three parcels. Planned office space should be distinguished from completed and occupied inventory.

What This Meant for Office Property Owners

The reports entering 2025 showed leasing activity and tenant demand that varied by location and building quality. They did not establish that every office property was gaining value or that every landlord could raise rent.

My recommendation for owners is to start with the property: review competing space, tenant needs, upcoming lease expirations, operating costs, and likely capital improvements. Use broader market reports to provide context for those decisions.

If you own an office or medical office property in Hillsborough, Pinellas, or Pasco County, explore landlord representation or seller representation, or contact John Milsaps to discuss your property and current market conditions.