Demand for Downtown Tampa Real Estate Remains Hot Among Investors

Undeniably, downtown Tampa has been undergoing a renaissance. With the city’s increased efforts to bring in urban renewal, the downtown core has been reaping the rewards. Currently, the downtown core is enjoying high interest from investors: one of the city’s largest office towers recently sold to an out-of-town investor and there is a flurry of residential and mixed-use development.

There is a lot of commercial investment activity going on in Tampa’s downtown and it’s going to bring big changes to the face of downtown.

Urban Lifestyle Attracting Investors

One of the biggest drivers attracting investors is Tampa’s increased push towards urban living. This has especially taken root in the downtown core. A number of revitalization efforts have led to a renewed interest in downtown Tampa. Many of the incoming developments and projects highlight the area’s inherent walkability and accessibility.

One of the biggest investments coming to downtown is the Water Street project. A $3 billion redevelopment, the project is set to completely revitalize and reinvigorate downtown Tampa’s Channelside District. Backed by Tampa Bay Lightning owner, Jeff Vinik and an investment group tied to Bill Gates, the Water Street project will bring in mixed-use, residential and even medical while focusing on sustainable, urban growth

Office Market Experiencing Growing Pains

While an increase in interest has brought in a lot of growth, downtown’s commercial market is starting to feel the pressure. Right now, total office vacancy is down to under 13 percent, and with no new devoted office construction in the works, this has caused some concern among landlords and brokers. It’s not deterring investors though.

One of Tampa’s most notable skyline figures, the Fifth Third building, recently sold to an investment firm out of Boston. The sale of the 19-story tower shows that investor interest in Tampa’s commercial real estate market remains strong.

Additionally, the rise of temporary offices and coworking spaces has offset some of the pressure on the commercial market. Due to its convenience and walkability, downtown Tampa has become a hotbed of coworking venues offering offices and hourly meeting rooms.