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The office market in Tampa Bay continues to evolve, reflecting national trends of rising vacancy rates, shifting work preferences, and the growing appeal of coworking spaces. While challenges persist, opportunities abound for businesses and investors adapting to these market shifts. Vacancy Rates and Rental Prices: A Mixed Outlook As of early 2025, Tampa’s office vacancy rate stands at 15.8% , reflecting a 260-basis point increase over the past year. This increase is aligned with national trends, where companies continue to adjust their office footprints in response to hybrid and remote work models. Despite the rise in vacancies, listing rates in Tampa have increased by 3.8% year-over-year, reaching $30.23 per square foot. This signals strong demand for high-quality spaces, even as older properties struggle to attract tenants.
On February 27, 2025, the Indian Rocks Beach City Commission voted 4-1 to reject a proposed settlement in a lawsuit from AP6, a company that owns a vacation rental property at 455 20th Ave. The lawsuit claims that the city’s 2023 short-term rental ordinance, which limits rentals to 10 guests, has caused a huge drop in the property’s value—about $2.65 million, according to court documents. The company argues that the city’s new rules are infringing on their property rights under Florida's Bert Harris Private Property Rights Protection Act. The Commission’s decision to continue fighting the lawsuit shows just how much tension there is between property owners and local governments over short-term rental regulations. For local residents, the situation has sparked heated debates, especially over the rise of large "party houses" in formerly quiet neighborhoods. While the property owners are upset about the financial impact of the new rules, many residents are glad to see the city standing firm. “Your job as a commissioner is to represent your constituents,” said one resident, emphasizing the concerns of people living nearby. It’s clear that the local community is divided, with some in favor of more regulation and others defending their right to rent out their properties as they see fit. For those in commercial real estate, this lawsuit highlights the growing importance of understanding local regulations, especially for vacation rental properties. As cities like Indian Rocks Beach crack down on short-term rentals, it could affect the value of these properties and their potential for income. This case could set a big precedent for how future cases like this are handled, so it’s important for investors and property owners to stay informed about how these regulations are shaping the market. With mediation set for later this month, it seems like both sides are still digging in their heels. On one hand, property owners want to protect their investments, while on the other, residents want to keep their neighborhoods from turning into tourist hotspots. As local advocate John Pfanstiehl put it, “Legislators have woken up to the damage STRs (short-term rentals) do in residential neighborhoods.” It’ll be interesting to see how this case plays out and what it means for other cities and commercial real estate in the future Source : Tampa Bay Times Thank you for your interest. Have questions regarding the local market? Navigate the Real Estate Market with confidence, and contact us at Cliggitt Valuation for your appraisal, consulting, and valuation needs today. Mike Cliggitt, MAI, MRICS, CCIM 813.405.1705 | 863.661.1165 - Direct Lines findvalue@cliggitt.com Appraisal & Valuation Markets
The self-storage industry continues to evolve amid economic fluctuations, shifting migration trends, and changes in housing markets. While the national market has seen some setbacks, Florida—particularly West Central Florida—remains one of the strongest self-storage markets in the country. Florida's Self-Storage Market: A Leader in Growth Despite national declines in self-storage revenue growth, Florida has remained resilient. Cities such as Tampa and Orlando have seen continued demand for storage units, driven by population growth, housing transitions, and disaster-related storage needs. According to the March 2025 Matrix Self Storage National Report , Florida markets continue to show strength: Tampa leads in rental rate growth , with a 3.1% year-over-year increase in advertised rates—the highest among top metros in the U.S. Orlando and Miami also remain competitive , ranking among the strongest storage markets despite slight declines in rental rates. Construction activity in Florida is high , with Tampa having 6% of existing storage stock under construction , second only to Phoenix. Why Is Florida’s Self-Storage Market So Strong? Several factors contribute to Florida’s consistent performance in self-storage demand: Population Growth & Migration Florida continues to experience above-average population growth , with steady migration from high-tax states like New York, New Jersey, and California. This influx of new residents increases the need for storage, whether for short-term moves or long-term downsizing. Housing Market Trends West Central Florida, particularly Tampa and Orlando , has seen significant home price increases, making self-storage an attractive solution for those in transition. Downsizers, renters waiting to buy, and new homeowners needing temporary space all contribute to strong storage demand. Hurricane Recovery & Seasonal Demand Florida's frequent hurricanes have made self-storage a critical resource for both temporary storage after disasters and seasonal storage needs for snowbirds and vacation homeowners. Business and E-Commerce Expansion Tampa’s growing economy, including expansions in logistics, e-commerce, and small businesses, has further fueled self-storage demand. Many businesses use storage units for inventory management, equipment storage, and temporary warehousing. West Central Florida: A Key Market for Self-Storage Investors Tampa stands out not only as one of the top self-storage markets in Florida but in the entire nation . In February 2025: Tampa’s advertised rental rates increased 3.1% year-over-year —outpacing major markets like San Francisco, Chicago, and Washington, D.C. The city has a higher-than-average supply pipeline , with 12.6% of inventory delivered over the past 36 months and 5.7% added in the last year . The under-construction supply continues to grow , reaching 6% of existing stock —a sign of continued confidence in Tampa's self-storage market. What’s Next for Florida’s Self-Storage Market? Looking ahead, Florida's self-storage industry is expected to remain strong, but investors should be mindful of rising supply levels . While demand is currently outpacing new supply, oversaturation could become a concern in highly developed areas. Key Takeaways for Investors & Operators: Tampa remains a prime market with continued rent growth and high occupancy rates. Orlando and Miami are seeing more supply coming online , which could lead to increased competition. New developments should focus on high-demand areas with population growth and limited storage options. Climate-controlled storage remains in demand due to Florida’s heat and humidity, making it a key differentiator for new facilities. Conclusion While national self-storage trends indicate challenges ahead, Florida—especially Tampa and West Central Florida—remains a powerhouse in the industry . Strong rental growth, ongoing migration trends, and business expansions continue to drive demand. Whether you’re an investor, developer, or storage facility operator, Florida remains a top market to watch in 2025. Want to learn more about commercial real estate opportunities in Florida? Contact us today!
The Tampa Bay Rays Back Out of Stadium Deal
Florida Lawmaker Proposes Cutting State Insurance for Non-Compliant Condo Associations
The self-storage industry is stepping into 2025 with a mix of optimism and hesitation. High interest rates, shifting supply dynamics, and uncertain demand are all at play. After going through the Matrix National Self Storage Report – January 2025 , here’s what’s worth noting. The Market Vibe: Some Good, Some Not-So-Good Industry experts gathered in NYC earlier this month for the New York Self Storage Association and KeyBanc Investor events, and the mood was noticeably more cautious than in previous years. The Good: Occupancy seems to be stabilizing, and rent growth is starting to turn a corner in some areas. The Not-So-Good: The Sun Belt (Florida, Atlanta, etc.) is dealing with supply and demand imbalances, and high interest rates are making transactions tricky. Still, storage operators expect 2-4% revenue and NOI growth in 2025, thanks to supply easing up and rent growth improving. Rental Rates: Still Dropping, But Slowing Down Decem ber marked the 27th consecutive month of year-over-year declines in rental rates, but here’s the silver lining: the rate of decline is slowing. Nationally, rates dropped 2.3% YoY—not great, but better than the -3.5% average over the past 12 months. Some bright spots: Tampa and D.C. actually saw non-climate-controlled (NCC) rates increase 0.2% YoY. Larger storage units (10x20, 10x30) are performing better than smaller ones, which is worth keeping in mind. Bottom line? Prices are still adjusting, but they’re not free-falling anymore. Construction & Supply: Easing Up, But Still a Factor Developers are tapping the brakes a little, which should help stabilize rental rates. 3.1% of existing storage stock is under construction, slightly lower than last month. Tampa, Orlando, and Atlanta are still oversupplied, making rent growth tougher in those markets. New York and Nashville had zero new deliveries in 2024, which helped rents hold up. That said, big projects are in the pipeline, which could shake things up. Which Markets Are Thriving (and Which Are Struggling)? Big winner: Tampa, with a 0.4% YoY increase in advertised rates, thanks in part to hurricane-driven demand. Other standouts: Minneapolis had the strongest month-over-month rent growth (+0.6%), thanks to limited new supply. Struggling markets: San Diego, Las Vegas, and Atlanta saw the biggest rent declines, largely due to an oversupply of new units. Investing in Self-Storage: Capital’s Out There, But Deals Are Slow There ’s still plenty of capital floating around, especially from private debt funds and new investors. But with high interest rates keeping some sellers on the sidelines , deals aren’t moving as fast. What’s Next? F or operators and investors looking to navigate 2025 successfully, here’s the game plan: ✅ Adjust pricing strategies based on regional demand. ✅ Focus on larger units, which are holding up better. ✅ Watch new supply closely—being in an oversupplied market could mean a tougher year. Self-storage isn’t going anywhere, but the industry is definitely in a transition phase. The next 12 months will be all about playing smart, staying flexible, and keeping an eye on the long game.
Disclaimer:
Please note that none of the information or opinions expressed herein are meant to convey nor should they be construed as real estate appraisal practice, brokerage practice, legal, tax, or financial advice.
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