Major slowdown in quarterly leasing activity
Office leasing activity in Tampa Bay dropped dramatically during the second quarter to 559,555 square feet (sf), a 40% drop year over year from 936,100 square feet (sf) in Q2 2022 and a 35% decrease from the prior quarter. The sheer number of leases counted over the quarter went the opposite direction, increasing from 149 leases in Q2 2022 to 158 leases in Q2 2023 and pointing to the increase in smaller-sized transactions across the market. The most sought-after submarkets of Westshore and Downtown Tampa continue to attract and retain tenancy, while those submarkets outside the urban core such as Northeastern Hillsborough and Northwest Tampa continue to see anemic levels of activity.