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Area Overview

The Tampa metro area is the 18th largest metro in the country, and was recently ranked by Money magazine as the “Best City in the Southeast.” More than 4.2 million people live in Greater Tampa Bay, and an active labor force of nearly 2 million ensures an abundance of qualified candidates to fulfill employer demand. The population is educated and expanding, with Florida boasting the top talent pipeline in the country, bolstered by a respected state college and university system. With a rising number of young professionals and rapid job creation in high-tech industries, Tampa Bay is considered among the leading places for the creative class to cluster.  Having recently ranked as one of America’s best cities for millennials, Tampa has seen a rising number of young professionals.

Tampa Bay is home to 19 corporate headquarters with over $1 billion in annual revenue, seven of which are Fortune 1000 companies, in addition to being the location of choice for nearly 500 foreign-owned companies representing over 40 nations. Nearly one in four business and information services firms in Florida are located within our region, which anchors the Florida High Tech Corridor, including some of the biggest names in banking and finance.

Two of the major economic engines for the region include the Port of Tampa and MacDill Air Force Base.  The Port of Tampa has a $15.1-billion annual impact with nearly 100,000 jobs created and 34 million tons of cargo and 1 million cruise passengers moving through the port annually.  MacDill Air Force Base, which is home to United States Central Command, United States Special Operations Command and the sixth Air Mobility Wing, has a $4.98-billion annual impact.

Companies operating in Tampa Bay enjoy low labor costs, favorable corporate tax policies, no personal income tax, and stable, pro-business leadership. Collaboration between state and local government and industry has resulted in effective development packages, targeted financial incentives, expedited permitting, and streamlined regulatory processes. These conditions have made the Bay Area an ideal place for companies such as Bristol-Myers Squibb, Depository Trust and Clearing Corporation, Citigroup, Amazon and USAA.

Markets

OFFICE

Continued investment activity is expected as capital continues to flow into the real estate market, albeit at a somewhat slower pace. The absence of new speculative construction, coupled with still-rising commercial land prices, should continue to support a stable vacancy rate with incremental gains in rents, particularly within sought-after class A space in primary submarkets. The urban core Downtown Tampa has been undergoing a renaissance of sorts, and with several prominent developments underway it is taking steps toward becoming the world-class downtown developers envision.

INDUSTRIAL

At the close of 2016, industrial fundamentals remained sound, with landlords continuing to incrementally increase asking rents, particularly in newer and more functionally efficient buildings in major distribution corridors. While a relative lack of large blocks of space in the market is fueling new construction activity, with the majority of new speculative construction in the East Side and Lakeland areas, it is expected that the new space underway will only partly mitigate the pent-up demand as tenant interest remains steady and strong economic fundamentals continue to support business expansion.

RETAIL

Tampa Bay’s 75 million-square-foot retail market ended 2016 with an incremental decline in vacancy, strong rental rate growth, and relatively tepid net absorption. There were no significant retail projects completed during the year, although a handful of single user and grocery-anchored projects were delivered. National and regional fast casual concepts continue to view Tampa as a viable option for expansion due in part to increased consumer spending. 

INVESTMENT

Tampa Bay appeals to investors due to its influence on Florida’s economy as a whole. With the eight-county Greater Tampa Bay region comprising more than 4.3 million people, it is currently home to 22% of Florida´s population and has 22% of the labor force. The Tampa area, with its efficient port system, has become a global gateway. With the Panama Canal being expanded and Cuba eventually opening up, commercial property in Tampa is a sound long-term investment. Investment interest continued at a steady pace and significant capital continued to chase acquisition opportunities throughout 2016. During the trailing 12 months ending December 2016, there were 190 office, industrial and retail sales of properties $2.5 million and higher, accounting for $2.4 billion and nearly 18 million square feet.