Tampa Bay’s retail and office markets draw strong investor interest
Writer: Andrea Teran
April 2025 — Consumers may be increasingly worried about the economy, but in Florida, they’re still spending. While consumer confidence slumped nationwide, retail sales in the Sunshine state climbed 4% this past December, outpacing national retail growth while fueling investor demand and keeping vacancy rates low across Tampa Bay.
“Across Florida and especially on the West Coast, retail remains incredibly strong,” Matt Siegel, executive managing director at Colliers, told Invest:. “Retailers are chasing Florida’s population growth, and that demand is driving investor confidence. Retail occupancy is high, and we’re seeing strong investor and developer interest in quality retail centers across the region.”
That strength is reflected in Tampa Bay, where vacancy held steady at 4.4% and asking rents rose to $29.47 per square foot, based on 4Q24 Tampa Bay Retail Market Report from Colliers International. More than 1.26 million square feet of retail space was leased last year.
Tampa Bay’s retail strength is increasingly tied to a broader regional trend: the rise of mixed-use development. Projects like Water Street and Midtown Tampa blend office, retail, dining, and residential into walkable, experience-driven hubs.
“We are seeing more large mixed-use projects that feature residential, retail, office, and hospitality components,” said Livingston Hessam, senior director of capital markets at Walker & Dunlop in an interview with Invest:. “These projects create the desired live-work-play and shop environment… The opportunity to mix new multifamily development with retail and other product types to create a destination has proven to be successful in Tampa Bay.”
This shift in tenant preferences is creating a reinforcing cycle. High-quality office space near retail and residential options performs better, and mixed-use developments are becoming magnets for talent, tenants, and investment.
“In the Tampa Bay area, developments that seamlessly blend work, live, and play concepts are in high demand,” Dominic Pickering, executive director at BTI Partners told Invest:. “Today’s buyers want the convenience of staying within their community for daily needs while also having the flexibility to travel and explore.”
Pickering, whose firm developed Marina Pointe in the Westshore Marina District, said luxury buyers are increasingly prioritizing lifestyle and convenience.
“What’s particularly interesting is that many of these new residents have gone on to start businesses locally, driving further economic growth and job creation,” Pickering said. “Additionally, we’ve seen both global and U.S. companies relocate their headquarters to Tampa or open offices here, attracting more C-suite executives to the region.”
This growing demand for integrated environments is also influencing office development.
“For landlords and office investors, it’s critical to focus on amenities that make their properties desirable, whether it’s fitness centers, food options, or outdoor spaces,” said Siegel. “The trend toward mixed-use plays into this because employees want easy access to dining, fitness, and social spaces before or after work.”
These live-work-play ecosystems are helping top-performing submarkets in Tampa Bay stand out as high-demand investment zones.
Despite higher borrowing costs and tighter capital markets, investor activity in Tampa Bay retail remained strong in Q4. The average sale price was $192 per square foot, with transactions like the $30 million Village Market deal in Wesley Chapel demonstrating sustained interest in prime retail assets.
“Mixed-use isn’t a formal asset class, but it’s a focus area because it blends residential, office, and retail — offering diversification within a single project,” Siegel said. “Florida’s metro areas, especially Tampa, are well-suited for vertical mixed-use projects due to their dense, growing populations and demand for live-work-play environments.”
Even as national trends point to caution, Tampa’s office market continues to outperform its peers. As of early 2025, Tampa’s office vacancy rate stands at 15.8%. The market has also experienced over 400,000 square feet of positive absorption in the last two quarters of 2024 — the strongest performance in over three years. This contrasts with cities like San Francisco and the Bay Area, where vacancy rates have surged to 27.8% and 26.2%, respectively.
“High-quality products continue to perform,” Siegel said. “Tampa has some standout examples — Water Street, Midtown, and developments around Armature Works and Westshore. Strong real estate is still in demand, and Tampa’s office market has outperformed many peer cities over the last couple of years. That’s a testament to the talent pool here — companies want to be in Tampa because they can recruit and retain top talent.”
Top image via Nathan Mullet/Unsplash
For more information, please visit:
https://www.colliers.com/
https://www.walkerdunlop.com/
https://btipartners.com/
