Demand
The Tampa Bay office market rebounded in Q3, posting nearly 212,000 square feet (sf) of net absorption after a modest loss in Q2. This was the strongest quarter since Q2 2025 and brought the year-to-date (YTD) total to 265,000 sf. By comparison, national net absorption was only about 50,000 sf for the quarter. Class A buildings accounted for 166,000 sf, or 78.3%, of the quarter's absorption. Westshore led with nearly 108,000 sf of occupancy gains, followed by the I-75 Corridor (65,000 sf) and Bayside in Pinellas County (47,000 sf). Westshore, where vacancy peaked at 19.2% after two building completions in 2025, has since recovered, with overall vacancy at 14.9%, down 320 basis points (bps) year-over-year (YOY). Westshore's gains were driven by TeamViewer and Deloitte, which each occupied 26,000 sf at Midtown East, and NinjaOne's 43,000 sf at Bridgeport Center. In the I-75 Corridor, Maska's 36,000-sf expansion at Netpark at Tampa Bay led activity, while ROM Technologies' 50,000-sf move-in at Bay Vista Pavilion anchored Bayside. The Tampa CBD was the main drag at -15,000 sf, as ConnectWise vacated 15,000 sf at Park Tower, followed by St. Petersburg Downtown at -6,000 sf.
Leasing activity remained relatively steady YOY, with over 541,000 sf of new deals inked in Q3. YTD activity reached 1.8 million square feet (msf), down 34.1% YOY against the elevated 2.8 msf signed through the first three quarters of 2025, when a record-setting Q1 inflated the comparison. Hillsborough County captured the bulk of leasing activity, accounting for 74.5% of YTD volume, while Pinellas County posted approximately 468,000 sf. Renewal activity, which is excluded from leasing statistics, reached nearly 308,000 sf in Q3, up 5.3% YOY, as tenants largely maintained their existing space. Notable renewals included Amerilife Group's 71,000 sf at 2650 McCormick Drive and a confidential 65,000-sf renewal at 100 N Tampa Street in the Tampa CBD. Amerilife also expanded by 25,000 sf and renewed at 2600 McCormick Drive in Countryside.
Class A product remained the preferred target for occupiers, representing 64.3% of YTD leasing activity. Westshore led all submarkets with approximately 340,000 sf of Class A deals signed YTD, representing 28.8% of activity within the segment. Overall, Westshore accounted for 579,000 sf, or 31.5%, of Tampa Bay's YTD leases signed, reinforcing its position as a leading office destination for tenants.
The largest new lease among the quarter's key transactions was Ferguson's 51,000-sf deal at 1301 E 4th Avenue in the Ybor City submarket. Q3 marked steady activity in large-block space with four new deals over 20,000 sf signed. This was on par with the six big-box deals inked in the previous quarter, followed by the three signed in Q1, and combined for 24.1% of all YTD new deals.
Supply
Within ground-up office construction remained limited, investment activity has increasingly shifted toward repositioning existing assets to mixed-use developments that incorporate smaller office components. With minimal new supply expected in the near term, these constrained conditions could support improving market fundamentals and provide greater pricing power for well-positioned assets as demand continues to recover.
Tampa Bay's overall office vacancy rate fell to 18.1% at the close of Q3, down 50 bps quarter-over-quarter (QOQ) and 100 bps YOY, its lowest level since Q4 2021. The market's vacancy rate remained below the national average of 20.0%, outperforming the U.S. office market by 190 bps, and it declined even as national vacancy ticked up 10 bps QOQ. Hillsborough County vacancy dropped to 18.5% (down 120 bps YOY), while Pinellas County recorded 16.6% (down 30 bps YOY). Class A vacancy fell 130 bps YOY to 16.4%, outpacing the 50 bps decline in Class B to 20.5%, which reflects the continued flight-to-quality trend across Tampa Bay. Pressure persisted in the Tampa CBD, where overall vacancy rose 80 bps YOY to 15.4%, led by Class B space at 23.9% (up 470 bps).
Market Pricing
Direct asking rents reached another record high in Q3 at $33.50 per square foot (psf), up 2.3% YOY. Growth was led by Class A assets at $37.14 psf, which rose 5.3% YOY. Ybor City outpaced all submarkets with the Class A average up 52.4% YOY to $64.00 psf. The increase was driven in part by East 5th at Gasworx, where asking rents topped out at $75.00 psf, helping elevate the submarket's overall pricing from one year ago.
Landlords also pushed rates in premium space across other submarkets. Class A rates in Westshore rose 5.1% YOY to $46.76 psf, and Pinellas County climbed 11.3% to $30.96 psf. St. Petersburg Downtown premium asking rents increased 7.9% YOY to $49.97 psf. In the Tampa CBD, Class A averages slipped 3.6% YOY to $44.80 psf, though asking rates at Thousand & One reached $76.00 psf for available space.
Class B product held steady, slightly down 0.6% YOY to $29.92 psf. Continued demand for competitively priced space has supported the segment's steady performance.
