Tampa, FL Economic Overview
Considered to be one of the most desirable places to live, the City of Tampa is perfectly positioned as both a thriving metropolis and an outdoorsy community. Forbes magazine ranked Tampa as one of the top 5 outdoor cities, in 2008. With a population estimated at 358,699 in 2014, Tampa was also ranked to be one of the top cities for “twenty-somethings,” making it a desirable market for the young adult population. Furthermore, in 2014, Tampa broke records, with 97.3 million visitors in a year. Tampa businesses benefit significantly from tourism revenue, and the economic prospects in the area are promising.
The Tampa Bay area economy is supported primarily by finance, retail, healthcare, insurance, shipping by both air and sea, national defense, professional sports, tourism, and real estate. With so much drawing people into the City of Tampa, there are countless opportunities for all kinds of businesses to get in on the action. Tampa is also home to Fortune 1,000 companies, such as OSI Restaurant Partners, WellCare, TECO Energy, and Raymond James Financial. Their success demonstrates the vast potential commercial real estate has in Tampa.
Tampa, FL Commercial Real Estate Market
The Tampa MSA has ranked as one of the most affordable for businesses in the U.S. and is the second most affordable market in Florida. Furthermore, the Tampa area ranked among the top 20 metros by economic growth in 2017, making it a desirable place to invest in commercial real estate, due to reliable market and economic growth. Considering the economic diversity in Tampa from retail to national defense, it is possible for any business to find success in Tampa.
Downtown Tampa: Downtown Tampa is considered to be the chief financial district of the Tampa Bay area. Influential companies in the area include Bank of America, BB&T, Marshall & Ilsley, PNC Financial Services, SunTrust, Sykes Enterprises, TECO Energy, and Frontier Communications. The Downtown Tampa culture is heavily steeped in the arts, as evidenced by the abundant presence of museums, art galleries, and theaters. Home to the University of Tampa, Downtown is also an education hub and is home to 6,900 students. With so much culture and diversity available in Downtown Tampa, it makes it a desirable location for commercial development aimed at millennial-fueled businesses.
Ybor City: Founded in 1880, Ybor City is one of the oldest neighborhoods in Tampa, founded on a successful cigar industry. A 2003 survey found that the top five business types in the area were professional services (22.8%), retail (18.4%), manufacturing (14.0%), wholesale/distribution (13.2%), and restaurants & bars (11.4%). Commercial development in this area has opportunity to grow and expand in a region that has dedicated a significant portion of land for commercial use.
Westshore: Considered to be the “Business District” of Tampa, Westshore has roughly 4,000 businesses and welcomes a work force roughly 100,000-strong. Most of Westshore is zoned for commercial use, it has more than 11,000,000 square feet of commercial office space, 32 hotels, 2 major shopping malls, and more than 200 restaurants and bars. Prominent businesses in Westshore include the Tampa International Airport, the headquarters of OSI Restaurant Partners, and the former team headquarters of the Tampa Bay Buccaneers. The commercial market in Westshore dominates the area.
Tampa, FL Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Tampa, FL Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Tampa, FL Commercial Inventory Breakdown
Office Spaces
Total: 32,601,788 SF
By square footage range:
- 50k to 100k SF: 4,391,181 SF / 13.47% of total office
- 100k to 500k SF: 22,501,575 SF / 69.02% of total office
- 500k to 1M SF: 5,709,032 SF / 17.51% of total office
By class:
- Class A+: 1,862,407 SF / 5.71% of total office
- Class A: 17,594,383 SF / 53.97% of total office
- Class B: 8,613,063 SF / 26.42% of total office
- Class C: 292,327 SF / 0.9% of total office
Industrial
Total: 8,507,275 SF
By square footage range:
- 50k to 100k SF: 851,252 SF / 10.01% of total industrial
- 100k to 500k SF: 6,049,069 SF / 71.1% of total industrial
- 500k to 1M SF: 1,606,954 SF / 18.89% of total industrial
By class:
- Class A: 3,671,348 SF / 43.16% of total industrial
- Class B: 4,452,122 SF / 52.33% of total industrial
- Class C: 383,805 SF / 4.51% of total industrial
Employment in Tampa, FL
The unemployment rate in Tampa is 4.8% - compared to the U.S. average unemployment rate of 5.2%, this reflects positively on Tampa’s job prospects. Listed below are the top 5 professions represented in the local economy, as well as the percentage of Tampa residents they employ:
- Sales, Office, Administrative Support (27.09%)
- Management, Business, Finance (16.56%)
- Production, Transportation, Material Moving (8%)
- Food Preparation, Serving (6.75%)
- Healthcare Practitioners and Technology (6.39%)
With the large majority of professionals working in office buildings, the Tampa office market has high potential for growth and high returns.
Education in Tampa, FL
There are several post-secondary education opportunities available in Tampa, including the University of South Florida near Temple Terrace, the University of Tampa, Hillsborough Community College, Erwin Technical Center, and the Art Institute of Tampa. These institutions of higher learning provide options ranging from graduate level education, a bachelor's degree, or an associate's degree. 24.1% of residents in Tampa have a bachelor's degree and 12% have a graduate degree. Any level of post-secondary education is available in Tampa.
Commuting Time in Tampa, FL
The average commute time in Tampa is 24.2 minutes, which is slightly below the national average of 24.8 minutes. Even so, Forbes Magazine declared Tampa as one of the worst commuting cities in the U.S. Residents in Tampa know that the city’s congestion problem is real and would argue that the 24.2-minute commute average doesn’t do it justice. The dense volume of cars on the road makes navigating rush hour infuriating when, at any other point in the day, it is manageable. More people in Tampa work the standard 9-5 workday creating a high density of vehicles on the road at rush hour and the roads are simply not equipped for the ever-increasing workforce population. The City has announced plans to increase Tampa’s walkability, bike-ability and increase efficiency of public transport options.
Tampa Demographics
Population
- Total Population376,345
- Male Population(48.4 %) 182,229
- Female Population(51.6 %) 194,116
- Median Age35.40
Income/Financial
- Average Household Income$83,832
- Median Household Income$50,909
- Median Income Under 25$27,462
- Median Income 25-44$58,357
- Median Income 45-64$57,164
- Median Income Over 65$33,701
News
2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space
April 10, 2019
Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office sp...
2018 Office Check-In: Top US Markets for Development, Largest Projects of the Year
September 20, 2018
We’re almost halfway through H2 2018, and it’s high time to check up on construction activity, as well as the state of the U.S. office pipeline when compared to previous analyses. Last year around the same time, we looked at top U.S. cities for office delivery during the fall-winter season, and ...
Winners and Losers in the Labor Market – US States and Metros with the Highest Income Inequality
August 21, 2018
Ever since Gordon Gekko uttered his now infamous credo, “greed is good,” many economists have been concerned with the long-term effects of the growing income inequality in the U.S. While free-market enthusiasts see things differently, inequality has become a recurring topic within our news cyc...
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