Tampa Bay, Florida’s office vacancies concentrated in aging suburban buildings
Tampa Bay’s office vacancy is increasingly concentrated in a small subset of aging buildings located in outer suburban areas, underscoring the market’s ongoing flight to quality.
While leasing demand has remained strong throughout 2025, particularly for four- and five-star properties in Westshore and downtown Tampa, a group of underperforming buildings continues to weigh on overall market fundamentals.
Properties that are larger than 10,000 square feet, more than five years old, and less than 50% leased hold 1.7 million square feet of the comparable market’s 7.2 million square feet of vacant inventory. More than one-third of those properties have individual vacancies exceeding 20,000 square feet. In contrast, the average lease size so far this year has been just 3,865 square feet.
Many of these buildings have struggled to retain and attract tenants for an extended period. The median number of months on market for these properties is 15, nearly double the overall market average of 8 months. For example, Citi vacated Hidden River V in Northeast Tampa in late 2022, leaving behind 135,000 square feet. While Spectrum filled 45,000 square feet late last year, the remaining space has yet to be leased.
Over the past year, these high-vacancy properties have recorded 390,000 square feet of negative absorption, compared to 430,000 square feet of positive absorption among similarly aged buildings that are at least 50% leased.
The geographic concentration of these vacancies is also notable. Suburban Hillsborough and Pinellas counties, excluding Westshore, account for 1.3 million square feet of vacant space. These areas have been disproportionately affected by tenant downsizing and relocations to more centrally located buildings.
With availability in top-tier buildings now down to 15.8%, the lowest level since late 2020, the flight to quality remains a defining trend in Tampa Bay’s office market. As tenants continue to prioritize modern, amenitized space in prime locations, older suburban buildings face mounting challenges in attracting and retaining occupants.
(CoStar Analytics | By Michelle Rumore)
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