Why Tampa Bay

TAMPA BAY Why

DYNAMIC TRENDS DRIVING GROWTH Q1 2025

#2 Best Large City to Start a Business WalletHub, 2024 Tampa Bay Snapshot About Tampa Bay

HERNANDO

TAMPA BAY

PASCO

The Tampa – St. Petersburg – Clearwater MSA on Florida's West Coast is comprised of the following counties: Hillsborough Pinellas Pasco Hernando

HILLSBOROUGH

PINELLAS

THE REGION CONTAINS THE 3 rd & 5 th Largest Cities in the State, Tampa and St. Petersburg WITH OVER 3.3 Million People, Tampa Bay is the 3 rd Largest MSA in the Southeast

Best Place to Live in Florida Forbes, 2024

Cushman & Wakefield | Why Tampa Bay

Contents

OFFICE Q4 2024 TAMPA BAY

MARKET FUNDAMENTALS

ECONOMY Tampa Bay’s unemployment rate stood at 3.6% in Q4 2024, up 40 basis points (bps) year-over-year (YOY) yet remaining below the national average of 4.2%. Over the past year, nonfarm employment in the region grew by 10,700 jobs, representing a modest 0.7% increase. While the pace of job growth has slowed, Tampa’s economy remains robust, as the Bureau of Economic Analysis identified the region as the seventh fastest-growing economy among large U.S. metros. This growth has been driven by significant expansions in the finance, insurance, and real estate sectors, alongside notable gains in the healthcare industry. These key sectors continue to support Tampa Bay’s economic resilience and attract both businesses and talent to the region. SUPPLY Overall vacancy ended the year at 20.0%, a decrease of 120 bps YOY and the lowest level recorded since Q2 2022. This decline was primarily driven by occupancy gains in Hillsborough County, where vacancy fell 190 bps YOY to 20.7%, while Pinellas County recorded a 90-bp YOY increase, reaching 17.9%. A significant reduction in vacant sublease space contributed to the overall drop, with 1.5 million square feet (msf) vacant at the end of Q4, down 9.4% YOY. While premium space remained largely leased, tenants continued to favor Class A properties, resulting in a 240-bp YOY decline in vacancy to 19.1%, marking the lowest Class A rate since Q4 2021. In contrast, Class B assets had a

20.0% Vacancy Rate 424K YTD Net Absorption, SF $30.67 Asking Rent, PSF (Overall, All Property Classes)

YOY Chg

Outlook

SPACE DEMAND / DELIVERIES

1,500

0 500 1,000

ECONOMIC INDICATORS

-500

-1,000 Thousands

YOY Chg

SELECT A TOPIC TO NAVIGATE SECTIONS

1.6M

Outlook

-1,500

Related Insights Cushman & Wakefield Research reports analyze economic and commercial real estate activity including supply, demand and pricing trends at the statewide, market and submarket levels. 1 Tampa Employment 3.6% Tampa Unemployment Rate 4.2% U.S. Unemployment Rate Source:BLS modest increase in vacancy to 21.4%, driven by notable rises in smaller, tertiary submarkets. Vacancy rates may experience a slight uptick in early 2025 due to the anticipated delivery of Midtown East, which has 86,000 square feet (sf) still available for lease. Tampa Bay recorded positive year-end absorption for the first time since 2018, with 424,000 sf, the highest annual figure in seven years. Hillsborough County led the way with 565,000 sf of occupancy gains, while Pinellas County ended the year with -141,000 sf of net absorption. A key driver of this positive momentum in Q4 was Masonite’s move into its 128,000-sf national headquarters at West End Place in the Ybor City submarket, contributing to the largest YOY decline in vacancy, down 33.3% to 5.5%. Other significant Q4 occupancies included Alvarez & Marsal, which took 45,000 sf at LakePointe Two, and Fisher, which expanded into 31,000 sf at LakePointe One, both located in the Westshore submarket.

2020

2021

Net Absorption, SF Construction Completions, SF

2022

2023

2024

OVERALL VACANCY & ASKING RENT

$32

$30

$28

$26

$24

22%

$22

19%

$20

2020

16%

2021

2022

13%

Asking Rent, $ PSF

2023

Clicking the home icon will take you back to the table of contents

2024

10%

Vacancy Rate

© 2025 Cushman & Wakefield © 2025 Cushman & Wakefield

THIS REPORT CONTAINS INTERACTIVE ELEMENTS DESIGNED TO ENHANCE YOUR EXPERIENCE. For optimal viewing and functionality, please open this PDF using Adobe Acrobat on a desktop computer or tablet. Some interactive features may not display correctly in web browsers or other PDF viewers.

Migration Hot Spot

Historic Population

Net Migration

Projected Growth

80k

3.7M

3.4M

3.5M

3.6M

2.0 %

70k

3.4M

3.6M

60k

1.7 %

1.5 %

60.5k

3.5M

3.3M

50k

38.0k

3.5M

1.0 %

40k

3.2M

3.2M

30k

3.4M

0.5 %

3.1M

20k

3M

0.0 %

3.3M

10k

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2019

2020

2021

2022

2023

2024

Population

Growth %

Net Migration

Population

#4 IN THE NATION FOR NET MIGRATION FROM 2019 – 2024

DAL 668k

HOU

PHX

TPA

ATL

AUS

ORL

CLT

SA

JAX

MIA

RDU

SRQ

LAS

BNA

LKL

FMY

SJC

CHI

SF

LA

NY

800k

600k

484k

383k

343k

330k

315k

400k

264k

246k

221k

188k

186k

173k

165k

155k

153k

150k

149k

200k

0

−82k

−200k

−170k

−191k

−400k

−427k

−473k

−600k

Cushman & Wakefield | Why Tampa Bay

Net Migration (2019 – 2024)

Projected Net Migration (2025 – 2030)

Industry Diversity

135k Total Businesses

65.9% White Collar

17.7% Blue Collar

16.4% Services

Business Summary BY NAICS (%)

CLICK EACH TOPIC TO LEARN MORE

Tampa

U.S.

0.0 %

5.0 %

10.0 %

15.0 %

20.0 %

Professional & Business Services

#1 #2 #3 #4 #5

Trade, Transportation, and Utilities

Education & Health Services

Leisure & Hospitality

Government

Financial Activities

Construction

Manufacturing

Other Services

Information

Source: U.S. Bureau of Labor Statistics

Cushman & Wakefield | Why Tampa Bay

Skilled & Growing Workforce

Labor Force

Unemployment Rate

1.75M

8.0 %

1.7M

1.7M

6.0 %

5.6 %

1.65M

TAMPA BAY IS THE #4 Hottest Job Market in the United States. Wall Street Journal, 2024

4.0 %

1.6M

3.7 %

1.55M

2.0 %

1.5M

1.5M

IN 2024

0.0 %

1.45M

2020

2021

2022

2023

2024

2025

2020

2021

2022

2023

2024

2025

TAMPA RANKS AMONG THE TOP 10 METROS FOR LARGEST GAIN OF COLLEGE GRADUATES AT 56% -Hire A Helper, 2024

Nearly 44% OF THE TOTAL POPULATION IS 20–54 YEARS OLD. Moody's Analytics

1.7M Employed Workers

#4 BEST CITY FOR STARTUPS IN 2024 -Home Bay

ESRI

Cushman & Wakefield | Why Tampa Bay

Work Life Balance

Four Professional Sports Teams

-2023 ONE OF TIME MAGAZINE'S 50 "WORLD'S GREATEST PLACES"

Tampa Bay Rays

Tampa Bay Buccaneers 2021 SUPER BOWL CHAMPIONS

Tampa Bay Lightning

Tampa Bay Rowdies

BASEBALL

2020 & 2021 STANLEY CUP CHAMPIONS

SOCCER

THE TAMPA RIVERWALK #2 of America's Top 10 Riverwalks USA Today - 2025

15 Beaches Including St. Pete Beach TRIPADVISOR'S #1 RANKED BEACH IN THE US - 2023

83° average annual temperature

TOP BEER CITY

5M Visitors PER YEAR

OUTDOOR ACTIVITIES

60+ Craft Breweries in the Tampa Bay Region

golfing fishing boating

Cushman & Wakefield | Why Tampa Bay

Education

Top Colleges BY ENROLLMENT FALL 2024

NEARLY 80 LOCAL COLLEGES AND HIGHER EDUCATION INSTITUTIONS ARE PREPARING GRADUATES WITH THE SKILLS OUR LOCAL JOB MARKET DEMANDS

75%

1

University of South Florida 48,732 Hillsborough Community College 30,221 St. Petersburg College 23,501 Polk State College 14,515 University of Tampa 11,429 Southeastern University 10,534 Pasco-Hernando State College 9,167 State College of Florida 8,588

of graduates at local post-secondary institutions end up staying in Florida, A MAJORITY WITHIN THE TAMPA BAY REGION.

Millennials are the second largest labor base in Florida.

UNIVERSITY OF SOUTH FL'S MUMA COLLEGE OF BUSINESS

4 5 3 6 7 8 2

offers comprehensive undergraduate and graduate degrees to meet the needs of Tampa Bay's financial and professional services industry.

THE UNIVERSITY OF TAMPA

175,000+ students attend one of the numerous, distinguished educational institutions in the Tampa Bay Area.

Sykes College of Business, a top 25 best value business school, according to Business Insider. One of the best full-time MBA programs as ranked by Bloomberg Businessweek.

9 10

Florida Southern College 3,194

#1

Best State for Higher Education Nine Years in a Row U.S. News & World Report, 2025

Eckerd College 1,986

Cushman & Wakefield | Why Tampa Bay

Logistics & Transportation

Map Layer Options

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Rail & Intermodal

Ports

Highways

Metropolitan Areas

Major Airports

Map Legend

Sea Port Tampa Bay - Florida's largest port by size and tonnage contributes $17B in economic impact supporting more than 85k jobs. Port St. Pete - Only megayacht marina on Florida's Gulf Coast. SeaPort Manatee - One of Florida's largest and fastest-growing deepwater seaports. The closest U.S. deepwater cargo seaport to the expanded Panama Canal. Rail Tampa Bay offers 500 miles of active railroad and siding track. After connecting South FL to Orlando, the high speed Brightline rail will expand west to Tampa.

Land Excellent interstate connectivity via I-4, I-75, and I-275. More than 35M consumers live within an 8-hr drive of Tampa Bay. Sky 2 international airports - nearly 25M passengers per year. Multiple projects complete: • Major main terminal renovation • 66 shops and restaurants • 1.4-mile automated people mover extending to a multi level rental car facility • Award-winning Blue Express Curbsides • Nine-story office complex and numerous public art installations, including a world-famous 21-foot pink flamingo in the Main Terminal. TPA is rated the #2 large airport in J.D. Power's North American Airport Satisfaction Survey.

Cushman & Wakefield | Why Tampa Bay

New-to-Market Tenant Demand

Seattle

Ark Invest Axogen

Camas

DoubleLine Capital Dynasty Financial Partners Fisher

Boston

New York

Chicago

Indianapolis

San Francisco

Inverstments Foot Locker ID.me OPSWAT Pfizer Rapid7 Signode Spot Freight

McClean

Glendale

Tampa Bay Continues to Draw a Wide Array of New-To-Market Companies Including: FINANCIAL SERVICES | TECH | HEALTHCARE | LAW

Relocation

Expansion

Cushman & Wakefield | Why Tampa Bay

New Development

HEIGHTS DISTRICT TAMPA

$3.5B+ INVESTMENT

$1.0B MIXED-USE DEVELOPMENT

Phase II CONDOMINIUM TOWER TAILORED OFFICE SPACE FOR KEY TENANT MIXED-USE AREA INCORPORATING A HOTEL AND ENTERTAINMENT OFFERINGS, INCLUDING A LIVE PERFORMANCE VENUE

260 KSF PROPOSED 14-STORY OFFICE TOWER HEIGHTS 201

50 AC MIXED-USE RIVERFRONT DEVELOPMENT

56 AC COMMERCIAL RESIDENTIAL HOSPITALITY RETAIL

23 AC APARTMENTS DUAL-FLAG HOTEL

430 KSF UNDER

CONSTRUCTION OFFICE TOWER MIDTOWN EAST

OFFICE RETAIL

DELIVERED 2020 | 100% LEASED 230,000 SF WATERFRONT OFFICE & RETAIL

DELIVERED 2021 | 89% LEASED NEW GLOBAL HQ FOR RELIAQUEST

DELIVERED 2021 | 100% LEASED 150,000 SF OFFICE MIDTOWN WEST

DELIVERED 2021 | 100% LEASED 72,000 SF BOUTIQUE OFFICE BUILDING

DELIVERED 2020 | 100% LEASED TWO 150,000 SF OFFICE TOWERS HEIGHTS EAST & HEIGHTS WEST

NOTABLE TENANTS

NOTABLE TENANTS

NOTABLE TENANTS

RELIAQUEST

RAPID7

BRADLEY

PRIMO WATER

KFORCE

TECO

PFIZER

AXOGEN DOUBLELINE

Cushman & Wakefield | Why Tampa Bay

Office Market Snapshot Q1 2025 40.5 MSF

Tampa Bay Inventory

CLASS A CLASS B 24.0 MSF 16.5 MSF Class A Spotlight

TAMPA CBD

4.8 MSF Inventory

12.8% Overall Vacancy

$45.81 Direct Rent (FS PSF)

WESTSHORE

7.6 MSF Inventory

15.6% Overall Vacancy

$41.11 Direct Rent (FS PSF)

TAMPA BAY OVERALL

I-75 CORRIDOR

4.2 MSF Inventory

27.3% Overall Vacancy

$28.23 Direct Rent (FS PSF)

SUPPLY & DEMAND

DIRECT RENTAL & VACANCY RATES

35.0%

$32.00

4.0M

30.0%

$31.00

ST. PETERSBURG CBD

3.0M

$30.00

25.0%

1.3 MSF Inventory

9.3% Overall Vacancy

$41.88 Direct Rent (FS PSF)

2.0M

$29.00

20.0%

1.0M

$28.00

15.0%

0.0M

$27.00

10.0%

GATEWAY 19.3% Overall Vacancy

-1.0M

$26.00

5.0%

2.2 MSF Inventory

$28.02 Direct Rent (FS PSF)

-2.0M

$25.00

0.0%

2020

2021

2022

2023

2024

2025 YTD

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Leasing Activity

Construction Completions

Overall Absorption

Direct Rental Rate

Overall Vacancy

Cushman & Wakefield | Why Tampa Bay

19 Industrial Market Snapshot 84.0 MSF Warehouse/Distribution 13.8 MSF Office Services/Flex

Q1 2025

75

WESTSIDE

NORTH PINELLAS

275

589

4

PLANT CITY

60

24.9 MSF Manufacturing

275

GATEWAY / MID PINELLAS

SOUTH TAMPA

92

Submarket Spotlight

EASTSIDE

EASTSIDE 4.9% Direct Vacancy

SOUTH PINELLAS

53.2 MSF Inventory

$10.95 Direct Rent (NNN PSF)

TAMPA BAY OVERALL

WESTSIDE

75

14.4 MSF Inventory

5.8% Direct Vacancy

$13.73 Direct Rent (NNN PSF)

SUPPLY & DEMAND

DIRECT RENTAL & VACANCY RATES

10.0M

7.0%

$12.00

6.0%

PLANT CITY

8.0M

$11.00

5.0%

$10.00

6.0M

18.2 MSF Inventory

11.8% Direct Vacancy

$8.00 Direct Rent (NNN PSF)

4.0%

$9.00

4.0M

3.0%

$8.00

2.0M

2.0%

GATEWAY/MID-PINELLAS

$7.00

1.0%

0.0M

2020

2021

2022

2023

2024

2025 YTD

$6.00

0.0%

25.8 MSF Inventory

5.2% Direct Vacancy

$10.90 Direct Rent (NNN PSF)

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Leasing Activity

Construction Completions

Overall Absorption

Direct Rental Rate

Overvall Vacancy

Cushman & Wakefield | Why Tampa Bay

Multifamily Market Snapshot 176,137 UNITS Tampa Bay Inventory

Q1 2025

EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE

ABSORPTION VS COMPLETIONS

STABILIZED OCCUPANCY RATE Excludes Properties Still In Their Initial Lease-Up Period 93.3%

8.0k

$ 2.0k

100 %

$ 1.8k

98 %

6.0k

$ 1.6k

96 %

4.0k

Effective Rents Increased 33.5% Over the Past Five Years ENDING 1Q25 AT $1,900 PER UNIT

$ 1.4k

94 %

2.0k

$ 1.2k

92 %

0.0k

2020

2021

2022

2023

2024

2025 YTD

8,311 Units Under Construction

$ 1.0k

90 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

29,841 Units Delivered Since 2020

Over $15.0 Billion In Sales since 2020, WITH 2021 SETTING A RECORD $5.2 BILLION

Cushman & Wakefield | Why Tampa Bay

Source: CoStar

Market Leads

Authors

SOURCES

www.lightcast.io/ www.census.gov Chief Executive Magazine, 2022, Biz2Credit Tax Foundation, 2021 Niche 2020

Moody's Analytics www.flgov.com www.aaroads.com ESRI

www.enterpriseflorida.com tampabayedc.com www.towncharts.com www.census.gov www.univstats.com www.collegeevaluator.com

©2025 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representation as to its accuracy. Cushman & Wakefield does not claim any ownership rights to the corporate logos featured in Why Tampa and their usage in this research report is strictly for illustrative and informative purposes. Why Tampa is intended for limited distribution.