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

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

MARKETBEAT Office Q4 2020 TAMPA BAY

14.5% Vacancy Rate -579K YTD Net Absorption,SF $27.44 Asking Rent,PSF (Overall, All PropertyClasses)

YoY

Chg

12-Mo. Forecast

ECONOMY The Tampa Bay region, which includes Hillsborough and Pinellas counties, had an unemployment rate of 5.7% in November 2020, up 30 basis points (bps) from the previous month as well as 320 bps higher than the region’s rate from one year ago. Nonagricultural employment was 1.35 million, a decrease of 56,400 jobs, or 4.0%, over the year. Three employment sectors that gained jobs year-over-year (YOY) were Manufacturing, Wholesale Trade and Other Services, adding a combined 2,600 new jobs in 2020. Leisure & Hospitality led other sectors in jobs lost last year, with 27,500 gone, followed by Professional & Business Services which had payroll declines of 9,000 positions. Office using employment in Tampa Bay remained impacted by overall economic conditions as area companies reassessed space needs. SUPPLY Overall vacancy ended the fourth quarter at 14.5%, an increase of 360 bps when compared to the end of 2019. Class A vacancy rose by 180 bps YOY to 14.2% with space in Class B climbing by 30 bps to 15.9%. Multiple blocks of vacant sublease space came to the market in 2020 as well as new construction deliveries. Both negatively impacted Tampa Bay’s vacancy rate in the last six months. Over 570,000 square feet (sf) was delivered in 2020, the most in annual deliveries since 2008. In the CBD, Heights Union West and Sparkman Wharf delivered, adding 307,000 sf of new office product. In the Northwest submarket, the 115,000-sf Renaissance Center VII delivered completely vacant. Close to 1.0 million square feet (msf) was currently under construction at the yearend, split between projects in the CBD and Westshore submarkets. DEMAND New leasing demand for 2020 between Hillsborough and Pinellas counties was off by 59% compared to the level of activity in 2019. Only 500,000 sf of the 2.1 msf in total leasing volume occurred in the last six months of the year. Both Hillsborough and Pinellas counties recorded the least amount of quarterly leasing activity in the last 12 years. Class A buildings year-to-date (YTD) had the most leasing activity, accounting for over 1.1 msf compared to 741,000 sf in Class B assets. Absorption trended downward through the year, recording approximately -579,000 sf YTD almost all from suburban submarkets. The Tampa CBD recorded positive absorption of 122,000 sf on tenants moving in in Class A space while St. Petersburg CBD recorded -6,194 sf on minimal move ins/move outs. MARKET PRICING Overall asking rents increased 3.5% YOY to $27.44 per square foot (psf) full service. For Class A assets, rental gains achieved cycle highs in the third quarter, rising to $30.81 psf, up 1.9% YOY and the third consecutive quarter Class A asking rents averaged above $30.00 psf in Tampa Bay. In the last 12-months, gains in the Tampa/Hillsborough market were up 5.3% to $29.00 psf while overall rents contracted in Pinellas County by 4.4% to $24.66 psf.

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ECONOMIC INDICATORS Q4 2020

5.7% Tampa Bay MSA UnemploymentRate 1.3M Tampa Bay MSA Employment

YoY

Chg

12-Mo. Forecast

6.7% 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. U.S. Unemployment Rate SPACE DEMAND /DELIVERIES -400 -200 0 200 400 600 800 2016 2017 2018 Net Absorption, SF Construction Completions, SF 2019 2020 Thousands $0 $5 $10 $15 $20 $25 $30 2016 Source:BLS. Numbers above are monthly figures, FL Dept. Economic OPP.

OVERALL VACANCY &ASKINGRENT

CLICKING THE HOME ICON WILL TAKE YOU BACK TO THE TABLE OF CONTENTS

20%

16%

12%

2017

8%

2018

Asking Rent, $ PSF

4%

2019

2020

0%

Vacancy Rate

Migration Hot Spot

Historic Population

Net Migration

Projected Growth

80k

3.7M

3.5M

3.6M

2.0 %

3.4M 1.7 %

70k

3.4M

60.5k

3.6M

60k

1.5 %

3.5M

3.3M

50k

3.5M

38.0k

1.0 %

40k

3.2M

3.2M

30k

3.4M

0.5 %

3.1M

20k

3.3M

10k

3M

0.0 %

2025

2026

2027

2028

2029

2030

2019

2020

2021

2022

2023

2024

2019

2020

2021

2022

2023

2024

Population

Growth %

Net Migration

Population

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

668k

600k

484k

383k

343k

400k

330k

315k

264k

246k

221k

188k

186k

173k

165k

155k

153k

150k

149k

200k

San Francisco, CA

Los Angeles, CA

San Jose, CA

Chicago, IL

New York, NY

0

Dallas, TX

Houston, TX

Phoenix, AZ

Tampa, FL

Atlanta, GA

Austin, TX

Orlando, FL

Charlotte, NC

San Antonio, TX

Jacksonville, FL

Miami-Fort Lauderdale-West Palm Beach, FL

Raleigh, NC

North Port-Sarasota-Bradenton, FL

Las Vegas, NV

Nashville, TN

Lakeland, FL

Cape Coral-Fort Myers, FL

−82k

−200k

−170k

−191k

−400k

−427k

−473k

−600k

−800k

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 (%)

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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 #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 - 2023

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%

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

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.

Florida Southern College 3,194

#1

Best State for Higher Education Eight Years in a Row U.S. News & World Report, 2024

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 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 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/SF)

WESTSHORE

7.6 MSF Inventory

15.6% Overall Vacancy

$41.11 Direct Rent (FS/SF)

TAMPA BAY OVERALL

I-75 CORRIDOR

4.2 MSF Inventory

27.3% Overall Vacancy

$28.23 Direct Rent (FS/SF)

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/SF)

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/SF)

-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/SF)

TAMPA BAY OVERALL

WESTSIDE

75

14.4 MSF Inventory

5.8% Direct Vacancy

$13.73 Direct Rent (NNN/SF)

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/SF)

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/SF)

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

CoStar Data Depicted

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.