Tampa Bay office market reflects effects of COVID-19, but impact may be more muted compared to other cities
While certain effects of the ongoing COVID-19 pandemic on the Tampa Bay market are clearly evident, such as increasing unemployment and declines in leasing activity, overall, the Tampa Bay area did not see the same dramatic impact that many of the major U.S. office markets saw in the second quarter. At the end of the quarter, overall availability was essentially unchanged from Q1 2020. Asking rents for Class A buildings ticked up in both Westshore and Downtown Tampa, which is likely due to landlords matching rates of new supply hitting the market and holding asking rates firm while offering other concessions. Central Florida’s strong fundamentals entering the pandemic could keep it poised for a quicker rebound.