3. REAL ESTATE OVERVIEW
// OFFICE MARKET OVERVIEW
• Overall, the Tampa Bay office market is currently in the middle of
the healthiest environment since the recession, and still has room to
grow. The office market has seen positive absorption in nine of the
last eleven quarters, and in that time tenants have taken 1.9 million
square feet of all vacant space, accounting for 5.6 percent of total
inventory. It is unlikely we will see the same development activity in
the current market cycle that Tampa Bay experienced from 20052009. Since few, if any, speculative office developments are expected
to deliver in the coming years, occupancy rates and asking rates
should approach, if not surpass, peak conditions experienced in
2006-2008 in all primary submarkets.
• Total occupancy has risen to 85.5 percent in Tampa Bay, its highest
total since the second quarter in 2007, having worked back from 76.5
percent in 2010. The majority of those occupancy gains took place in
the Class A market, which has accounted for 2.8 million square feet of
absorption, or 87.6 percent of all absorption gains across the market.
• Both CBD submarkets have experienced robust leasing activity
and absorption