Sublease space continues to decline marking increased occupier stability
The Tampa Bay area recorded another quarterly decline in overall availability with the Q2 rate at 20.0%, down 50 basis points (bps) compared to 20.5% a year ago. Westshore Class A availability increased 30 bps year over year to 18.7% from 18.4%. Tampa CBD Class A availability also ticked down 88 bps year over year to 16.0% from 16.9%. While deal volume continues to be dominant in Westshore, the Northeast Hillsborough submarket saw the most leasing since Q4 2022, led by the Thomas M. Cooley Law School lease of 50,756 square feet (sf) and the TGH Imaging lease of 25,000 sf. Sublease inventory continued its steady decline, down 7% from the prior quarter to 2.6 msf. The largest lease for the quarter was a renewal by the law firm of Foley & Lardner at 100 North Tampa, one of Tampa CBD’s trophy buildings, which was purchased at quarter-end by Atlanta-based Brookdale Group whose known interests have an estimated property value of $1.4 billion.