In Q2 2025, Sarasota’s office market demonstrated stability despite headwinds. Sales volume totaled $50.2 million, with assets trading at an average of $180 per SF and market cap rates holding at 5.3%, reflecting balanced investor sentiment. On the leasing side, activity reached 224,500 SF, helping to sustain a 5.4% vacancy rate, one of the lowest in Florida, even as new deliveries added 32,700 SF of space. Asking rents climbed modestly, averaging $28.60 per SF, up 1.3% year-over-year, while construction remained limited with just 50,800 SF under development, signaling a cautious pipeline. Overall, Sarasota’s office market, anchored by more than 28 million SF of inventory, remains one of the most resilient in the state, though near-term rent growth prospects are expected to moderate.

 

Highlights

• Stable Rent Growth and Rising Asking Rents: Market asking rents averaged $28.60/SF, reflecting a 1.3% year-over-year rent growth. This moderate gain shows Sarasota’s ability to sustain rental increases despite softer demand conditions, keeping rates competitive compared to nearby markets.
• Tight Market Fundamentals with Limited Vacancy: The vacancy rate stood at 5.4% in Q2 2025, supported by 224.5K SF of leasing activity. Deliveries of 32.7K SF were absorbed into the market without significantly disrupting occupancy, underscoring Sarasota’s tight office fundamentals.
• Sales Market Activity Remains Active but Balanced: Total sales volume reached $50.2M, with an average sales price of $180/SF and an overall cap rate of 5.3%. The figures suggest steady investor interest at pricing levels consistent with regional norms.

 

Market Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 3.9%
• Current Population: 946,411
• Households: 425,557
• Median Household Income: $83,200

 

Sarasota Office Rents

Sarasota’s office market recorded modest rent growth, with asking rents averaging $28.60 per SF, marking a 1.3% year-over-year increase. Despite several quarters of negative absorption, the market sustained a low vacancy rate of 5.4%, one of the tightest in Florida, supported by steady leasing activity of 224,500 SF during the quarter. Limited new supply—just 32,700 SF delivered alongside 50,800 SF under construction—helped maintain pricing stability, while investor activity, with a $50.2M sales volume and an average sales price of $180 per SF, further underlined confidence in Sarasota’s rent fundamentals.

 

Market Asking Rent Per SF

Source: CoStar Group, Inc.

 

Sarasota Office Vacancy

The market maintained one of the lowest vacancy rates in Florida, holding at 5.4% despite ongoing challenges with negative absorption. Leasing activity totaled 224,500 SF, which helped offset the impact of 32,700 SF of new deliveries, while an additional 50,800 SF remained under construction. The combination of modest new supply and consistent leasing demand supported stability in vacancy levels, keeping them well below the national average. This resilience underscores Sarasota’s position as a competitive office market, with tight fundamentals that continue to appeal to both tenants and investors.

 

Vacancy Rate

Source: CoStar Group, Inc.

 

Sarasota Office Construction

Construction activity remained limited, with 32,700 SF delivered and 50,800 SF under construction, representing just 0.2% of total inventory. The pipeline consisted of three projects, including a 31,000 SF development on Sumter Boulevard and a 16,822 SF build at West Villages Parkway, both scheduled to complete in 2026. Despite the modest scale of new supply, Sarasota’s market fundamentals—anchored by a 5.4% vacancy rate and consistent leasing demand of 224,500 SF during the quarter—helped balance these additions, underscoring the region’s measured but steady growth trajectory.

 

SF Under Construction

Source: CoStar Group, Inc.

 

 Sarasota Office Sales

Sales activity in Sarasota’s office market totaled $50.2 million, reflecting steady but tempered investor demand compared to historical peaks. Assets traded at an average sales price of $180 per SF, slightly below the 12-month average of $193 per SF, while market-wide pricing held near $183 per SF. Cap rates averaged 5.3%, signaling investor confidence in the market’s fundamentals despite a slowdown from the cyclical high in 2023. Large single-property trades remained scarce, with sales activity dominated by smaller deals, particularly in the medical office segment, which continues to account for a significant share of transaction volume. Overall, Sarasota’s Q2 results highlight consistent investor interest at balanced pricing levels, even as activity trails the region’s longer-term averages.

 

Sales Volume & Market Sale Price Per Unit

Source: CoStar Group, Inc.

 

 By the Numbers

Source: CoStar Group, Inc.

• Sales Volume: $50.2M
• Cap Rate: 5.3%
• Price Per SF: $180
• Vacancy Rate: 5.4%
• Rent Growth (YOY): 1.3%
• Asking Rent Per SF: $28.60
• SF Under Construction: 50.8K
• SF Delivered: 32.7K
• SF Leased: 224.5K