Leasing volume edges up due to strong demand from relocating and expanding tenants

Leasing activity in Tampa Bay has reached or surpassed one million square feet (msf) in three of the past four quarters, underscoring continued confidence in the market’s fundamentals. While this momentum signals healthy demand, some companies have begun to scale back or streamline operations, with office-using employment declining 1.4% year-over-year as of August 2025. The professional and business services sector experienced the sharpest drop at 2.4%. Even so, the market continues to attract new entrants—such as life sciences firm Eagle Analytical Services—drawn by Tampa Bay’s expanding business ecosystem and deep talent pool. Florida’s elimination of sales tax on commercial leases, effective October 1st, removed a uniquely burdensome occupier cost—previously the only one of its kind in the U.S.—and significantly strengthens the state’s competitive edge in attracting new tenants from across the country.

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