Westshore Office Market Update: Q1 2023 Insights and Trends

21st Annual
Westshore Development Forum
Lauren Coup
Senior Director of Leasing
Highwoods Properties
May 18, 2023
Westshore Office Market Update
OFFICE AT A GLANCE
33.8M
Total SF
18.7M
Class A
15.4M
Class B
13.3M
Total SF
7.9M
Class A
5.3M
Class B
TAMPA
Inventory
WESTSHORE
Inventory
Source: CBRE Q1 2023
WHAT'S IN THE NUMBERS?
Q1 2023
Leasing Activity
(Class A & B)
Leasing Activity
(Class A)
Vacancy Rates
(Class A)
Rental Rates
(Class A)
Tampa
Westshore
859,207 SF
609,580 SF
24%
$35.35
379,585 SF
260,482 SF
20%
$37.66
Source: CBRE Q1 2023
 
13.2M SF
Commercial office space, making
up the largest suburban office
submarket in Florida.
WHY CHOOSE WESTSHORE?
 
100K EMPLOYEES
Comprising over 4,000 businesses and
major employers
 
Chosen as one of the World's
Greatest Places 2023 by 
Time
Magazine
 
TAMPA
 
Award-winning airport with
over 80 nonstop domestic and
international destinations
 
TAMPA INT'L AIRPORT
 
Public & private investments
in Westshore with over 25
projects planned or underway
 
$2 Billion+
 
10 minutes to Downtown Tampa
5 minutes to TPA
30 minutes to 75% of Tampa Bay's
residential neighborhoods
 
EPICENTER OF IT ALL
 
Attend classes on college campuses in
Westshore, making up a large pool of
talent getting ready to enter the
workforce
 
26K STUDENTS
 
250+ Restaurants & 350+ Retailers
45+ Hotels
Raymond James Stadium & George
Steinbrenner Field
 
AMENITIES
Source: Westshore Alliance Q1 2023
MAKING BIG MOVES
Fisher Asset
Management
Maxim
Healthcare
Services
Morgan
Stanley
(sublease)
Mad
Mobile
(sublease)
Cole, Scott
& Kissane
Banyan Health
Systems
(sublease)
Gale Healthcare
Solutions
(sublease)
Delta
Airlines
McNichols
Co.
OPSWAT
74,724 SF
71,005 SF
53,272 SF
53,272 SF
42,400 SF
40,267 SF
39,205 SF
35,394 SF
32,075 SF
31,660 SF
Source: CBRE Q1 2023
NEW OWNERSHIP
Source: CoStar Q1 2023
ADDITIONS BY QUARTER
279K
174K
1.1
M
520K
909K
354K
326K
260K
348K
401K
3.2M SF of sublease space available across all Tampa submarkets, making
up 7.1% of total inventory
3.3% MOM net decrease in total sublease availability (175K SF was
removed in March 2023)
114 subleases are available in Tampa Bay
DISTRIBUTION BY SIZE
RANGE
Source: CBRE Q1 2023
SUBLEASE MARKET
RENAISSANCE CTR VII
SPARKMAN WHARF
HEIGHTS UNION
Ask for feedback
COMPLETED
2020
CHANGING THE SKYLINE
MIDTOWN WEST
1001 WATER STREET
SKYCENTER ONE
THE LOFT AT MIDTOWN
COMPLETED 2021
150K SF      100%
 115K SF       100%
300K SF      100%
152K SF      97%
380K           79%
275K SF      99%
72K SF        100%
Source: CoStar Q1 2023
Corporate Center V
400 Channelside
Collaborative Werx
SkyCenter Two
MIDTOWN EAST
UNDER
CONSTRUCTION
THE FUTURE OF NEW CONSTRUCTION
PROPOSED FUTURE
PROJECTS
430K SF
Est. Q1 2025
Heights 201
180K SF
500K SF
120K SF
200K SF
286K SF
Source: CoStar Q1 2023
WESTSHORE’S FINAL REPORT CARD
A-
Source: CBRE/Cushman &
Wakefield Q1 2023
THANK YOU
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Explore key insights from the Q1 2023 Westshore office market update, including leasing activity, vacancy rates, rental rates, major moves by companies, new ownership details, sublease market additions, and reasons to choose Westshore in Tampa. The report highlights the significant developments and trends shaping the commercial real estate landscape in the region.

  • Westshore Office Market
  • Q1 2023
  • Leasing Activity
  • Commercial Real Estate
  • Tampa

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  1. Lauren Coup Senior Director of Leasing Highwoods Properties May 18, 2023 21st Annual Westshore Development Forum Westshore Office Market Update

  2. OFFICE AT A GLANCE TAMPA Inventory 18.7M Class A 33.8M Total SF 15.4M Class B WESTSHORE Inventory 13.3M Total SF 7.9M Class A 5.3M Class B Source: CBRE Q1 2023

  3. WHAT'S IN THE NUMBERS? Q1 2023 Leasing Activity (Class A) Vacancy Rates (Class A) Rental Rates (Class A) Leasing Activity (Class A & B) 859,207 SF Tampa 609,580 SF 24% $35.35 379,585 SF 260,482 SF 20% $37.66 Westshore Source: CBRE Q1 2023

  4. WHY CHOOSE WESTSHORE? TAMPA $2 Billion+ Chosen as one of the World's Greatest Places 2023 by Time Magazine Public & private investments in Westshore with over 25 projects planned or underway EPICENTER OF IT ALL 13.2M SF Commercial office space, making up the largest suburban office submarket in Florida. 10 minutes to Downtown Tampa 5 minutes to TPA 30 minutes to 75% of Tampa Bay's residential neighborhoods 100K EMPLOYEES Comprising over 4,000 businesses and major employers 26K STUDENTS Attend classes on college campuses in Westshore, making up a large pool of talent getting ready to enter the workforce AMENITIES TAMPA INT'L AIRPORT 250+ Restaurants & 350+ Retailers 45+ Hotels Raymond James Stadium & George Steinbrenner Field Award-winning airport with over 80 nonstop domestic and international destinations Source: Westshore Alliance Q1 2023

  5. MAKING BIG MOVES Fisher Asset Management Maxim Healthcare Services 71,005 SF Morgan Stanley (sublease) Mad Mobile (sublease) Cole, Scott & Kissane 74,724 SF 53,272 SF 53,272 SF 42,400 SF Gale Healthcare Solutions (sublease) OPSWAT Delta Airlines McNichols Co. Banyan Health Systems (sublease) 40,267 SF 32,075 SF 31,660 SF 39,205 SF 35,394 SF Source: CBRE Q1 2023

  6. NEW OWNERSHIP Independence Center I $23,000,000 ($289/PSF) FBI Building $70,400,000 ($510/PSF) The Bridge $14,225,200 ($145/PSF) Bridgeport Center $40,000,000 ($222/PSF) 4401 W. Kennedy Blvd (Kennedy Building A&B) $7,900,000 ($280/PSF) 6550 W. Hillsborough Ave (Verizon Building) $27,300,000 ($169/PSF) Source: CoStar Q1 2023

  7. SUBLEASE MARKET ADDITIONS BY QUARTER DISTRIBUTION BY SIZE RANGE 1,250,000 <2.5K SF 10 40K+ SF 20 1.1 M 1,000,000 909K 750,000 2.5 to 5K SF 20 500,000 520K 401K 354K 348K 326K 250,000 279K 260K 20-40K SF 21 174K 0 5 to 10K SF 21 10-20K SF 22 3.2M SF of sublease space available across all Tampa submarkets, making up 7.1% of total inventory 3.3% MOM net decrease in total sublease availability (175K SF was removed in March 2023) 114 subleases are available in Tampa Bay Source: CBRE Q1 2023

  8. CHANGING THE SKYLINE RENAISSANCE CTR VII MIDTOWN WEST 152K SF 97% 115K SF 100% SPARKMAN WHARF 150K SF 100% 1001 WATER STREET 380K 79% HEIGHTS UNION 300K SF 100% SKYCENTER ONE 275K SF 99% THE LOFT AT MIDTOWN Ask for feedback 72K SF 100% COMPLETED 2020 COMPLETED 2021 Source: CoStar Q1 2023

  9. THE FUTURE OF NEW CONSTRUCTION MIDTOWN EAST Heights 201 286K SF Corporate Center V 180K SF 400 Channelside 500K SF Collaborative Werx 120K SF 430K SF Est. Q1 2025 SkyCenter Two 200K SF UNDER PROPOSED FUTURE PROJECTS CONSTRUCTION Source: CoStar Q1 2023

  10. WESTSHORES FINAL REPORT CARD A- THE POSITIVES: Highly-amenitized area with desirable assets Central location pulling talent from high-growth areas TPA growth & accolades support surrounding commercial real estate market Tampa Bay is among top 5 metros with the lowest unemployment rates in the US THE OPPORTUNITIES: Westshore not immune to national trends of contraction/consolidation/WFH Elevated level of sublease space Source: CBRE/Cushman & Wakefield Q1 2023

  11. THANK YOU

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