Tampa Bay among strongest commercial real estate markets in US, report says
By Erik Bojnansky and Devonta Davis
Tampa Bay Business Journal
Published: May 17, 2022

The Tampa-St. Petersburg-Clearwater metro area is among the strongest commercial real estate markets in the nation, according to a recently released report from the National Association of Realtors.

The Tampa Bay area scored 64 points making it the fifth-best metro in Florida, behind Orlando (84), Miami (76), Palm Beach (76) and Fort Myers (72).

The Orlando-Kissimmee-Sanford area came in the top spot in the nation.

Locally, the trend didn't stop multifamily rents from rising and vacancies in the commercial market from falling.

Tampa Bay's effective rent — the average rent a landlord receives after deducting expenses such as leasing commissions and tenant improvements — was $1,714 a month in the first quarter, a 23.7% increase year over year, according to NAR's report.

Meanwhile, average weekly wages were $1,054 a month in the county, a 9.6% increase during that period. There was a 5% increase in job creation.

While Tampa Bay's wages were higher, Orlando had stronger rents and job creation, according to the report.

Orlando's effective rent in the first quarter was $1,732 a month, a 26.4% increase from the year before. Its average wages grew 9.2% to $1,029 a week, and its job creation was 8.6% higher than the year-ago quarter.

In the first quarter, the multifamily vacancy rates across Tampa Bay were comparable to Orlando's 5% rate. The vacancy rate was 4.9%, indicating that demand was still strong.

The Bay area's retail vacancy rate was 3.6% in the first quarter, according to NAR's report. Its market rent was $22.1 a square foot, 8% higher than the year-ago quarter. Industrial spaces had a vacancy rate of 3.6%, with rents rising 12.5% from the year-ago quarter to $9.3 a square foot. Office vacancies were 9.1%, with market rates increasing 1.1% year over year to $25.9 a square foot.

NAR uses data collected from CoStar and the U.S. Labor and Census bureaus to compile its findings.