New data shows the Sun Belt office market gaining strength again and Tampa is one of the biggest winners. Major real estate owners are reporting sharp increases in leasing as companies continue to move out of high-tax states and into growth markets across the South.
What happened
Cousins Properties, a large Sun Belt-focused REIT, reported a major jump in office leasing in the third quarter. The company closed 40 leases totaling 551,000 square feet with an average term of 9.4 years. Leasing volume was 65% higher than the previous quarter. Dallas and Tampa saw the strongest rent gains.
Highwoods Properties also reported strong demand. The company said Dallas was the busiest market, with Charlotte and Raleigh not far behind. Tampa continued to attract firms seeking updated space and competitive rates.
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Piedmont Realty Trust reported more tenants looking for high-quality space that does not come with coastal price points. The company said the Sun Belt is attracting firms seeking modern space at lower cost.
Across the region, the same trend keeps appearing. Companies are moving south for affordability, talent and business climate advantages. Tampa is benefiting from each of these factors.
Tampa examples
Several recent decisions show why Tampa is gaining momentum.
Wagamama moved its U.S. headquarters from New York to Tampa to support national expansion. The company selected a new office on North Westshore Boulevard and said Tampa’s talent pool will help with hiring.
Orion Edge, a Colorado defense contractor, relocated its headquarters to Tampa and committed $20 million in investment. The company cited Tampa’s proximity to U.S. Special Operations Command and the region’s strong business environment.
LGE Design Build chose Tampa for its East Coast hub. The company entered the Florida market with nearly 500,000 square feet of logistics and industrial projects already under contract.
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The Tampa Bay Economic Development Council also closed 29 projects in the most recent fiscal year. These wins will create 2,280 jobs and generate more than $273 million in capital investment across Hillsborough County. The EDC also launched its Future Ready plan to strengthen business development, talent development and place-based development.
Each move reinforces Tampa’s growing role as a hub for companies that want modern space, competitive costs and access to talent.
Why this matters
Tampa has become a top destination for firms moving south. The city offers lower costs than major coastal markets, a strong workforce and modern office options. These strengths are driving more relocation activity and helping support local office demand.
Industry leaders say companies in technology, finance, defense and design-build are driving much of the shift. These sectors continue to seek quality space that supports hybrid work and long-term growth.
Tampa’s growing roster of corporate wins shows the city is part of a larger national trend reshaping the office market.
What’s next
Leasing activity should stay strong through 2026 as more companies evaluate relocation and expansion in Florida. Key signs to watch include new project announcements, net absorption and out-of-state tenant tours.
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If migration stays strong, Tampa could be one of the top-performing Sun Belt office markets next year.
Takeaway
Companies are moving south for cost savings and talent. Tampa continues to stand out as a top choice. Recent relocations and rising leasing demand show the region has strong momentum and is positioned for another year of growth.