Leasing activity down slightly but higher than a year ago
Quarterly office leasing activity in Tampa Bay decreased 23% quarter over quarter with 936,100 square feet (sf) recorded, although year over year leasing activity was up 32%. Two of the major leases signed in the second quarter of 2022 were renewals by significant-sized tenant in the Sarasota City Center and the 34,846-sf renewal by Morgan Stanley at One Sarasota Tower. Reflecting the flight to quality trend playing out in many cities, all of the top 10 leases recorded this quarter were in Class A properties, predominantly in the region's largest submarket, Westshore. Decisionmakers appear to be basing office space decisions on qualitative factors - workplace environments that emphasize amenities and wellness. An example was the decision by cybersecurity firm Rapid7 to locate its new Tampa location in a 42,753-sf waterfront space at Sparkman Wharf, within the $3-5-billion, 56-acre Water Street Tampa district in the Tampa CBD.