Over 500k square feet of GSA leases in Tampa Bay could be terminated by the end of 2026
- Avison Young’s Federal Property Pulse provides an in-depth analysis of terminated GSA (General Services Administration) leases, as well as those in soft term status—where the government retains the right to terminate the lease with a standard notice period of 120 to 180 days.
- Currently in the Tampa Bay area, three GSA leases have been terminated, totaling just over 50,000 square feet (sf). The IRS was responsible for two of these three terminations—21,300 sf at Baypoint Commerce Center in St. Petersburg and 30,400 at the Florida Blue Tower in Tampa’s Westshore submarket.
- Additionally, 58,000 sf of GSA-leased space is in holdover status, meaning the leases have expired but the government tenants continue to occupy the premises without a formal renewal or extension. Holdover tenants typically occupy on a month-to-month basis, often paying up to 150% of the original starting rent.
- Looking ahead, over 500,000 sf of active leases across Tampa, St. Petersburg, and Clearwater are at risk of termination by the end of 2026. If the Department of Government Efficiency (DOGE) proceeds with these cuts, office vacancy in the greater Tampa Bay market could exhibit a sharp rise from 18.7% to 20%, an increase of 130 bps.
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