Tampa’s medical office market continues to outperform its non-medical office sector, find out why in our latest Tampa Medical Office Market Report | Q3 2025.
Tampa Bay has positioned itself as a leader in the healthcare and life sciences industry over the past decade. Major corporations have located operations, R&D, and manufacturing facilities in the region, drawn by Tampa Bay’s talented workforce, strong research university presence, and collaborative community.
More than 20% of those employed in Florida’s life sciences sectors reside in the Tampa MSA, and over the next five years, the healthcare and life sciences industry is projected to see growth of more than 6% in the Tampa MSA.
“Go where the growth is.” — T. Boone Pickens
Tampa is home to the Tampa Medical & Research District (TMRD) — anchored by Tampa General Hospital (TGH) and the University of South Florida (USF) Health Morsani College of Medicine — which together form one of the largest academic healthcare systems in the United States. The TMRD is described as a robust and inclusive healthcare and life sciences ecosystem that attracts clinicians, scientists, educators, and investors.
The region also includes:
-
The state’s only NCI-designated Comprehensive Cancer Center, Moffitt Cancer Center
-
USF Health’s Morsani College of Medicine, recognized as the nation’s fastest-rising medical school in primary care over the past decade (U.S. News & World Report Academic Insights)
In recent years, corporations including Bristol Myers Squibb, Johnson & Johnson, Amgen, and Pfizer selected Hillsborough County for major North American operations. Tampa has also attracted companies such as Axogen, Bausch & Lomb Pharmaceuticals, and Verséa Health, focused on developing treatments and innovative medical solutions.
Against this backdrop, Tampa’s medical office market continues to outperform its non-medical office sector. However, recent quarters have shown softening due to large physician groups closing operations, which has led to negative absorption and an increase in vacancy year over year.
Tampa Medical Office Market Snapshot
Current Market Indicators:
-
312,000 SF under construction
-
118,000 SF delivered over the past 12 months
-
-72,000 SF 12-month net absorption
-
2.7% 12-month rent growth
-
6.6% vacancy rate
Net Absorption & Vacancy Trends
Tampa’s medical office market has experienced recent softening.
-
Some large physician groups closed operations over the past few quarters.
-
Absorption trended negative.
-
Vacancy increased approximately 100 basis points year over year.
County-Level Performance
Softening has been concentrated in Pinellas County:
-
Approximately -155,000 SF of absorption over the trailing four-quarter period.
In contrast, Pasco County, identified as the region’s fastest-growing county, recorded:
-
Over 75,000 SF of positive net absorption over the same period.
Tampa Medical Office Rent Growth
Medical office rent growth has slowed over the past few years, similar to Tampa’s non-medical office market.
-
Rents increased 2.7% year over year as of Q3 2025.
-
Average rents reached just over $30 per square foot, full service gross.
-
This is down from a 5.6% annual growth rate recorded one year earlier.
Construction Pipeline Activity
Medical office development remains a significant portion of the Tampa office pipeline.
-
Medical office construction accounts for 65% of Tampa’s overall office construction pipeline.
-
Several proposed projects across the metro — primarily by major hospital groups — are expected to break ground in the coming quarters.
Summary
The Tampa medical office market continues to outperform the non-medical office sector. Recent physician group closures have resulted in negative net absorption and a rise in vacancy. Rent growth has moderated, while medical office development remains a dominant component of Tampa’s construction pipeline.
Source: CoStar Group, 10/13/2025