Tampa Q1 Industrial Market Report
Market Overview
Tampa’s industrial market is the second largest in Florida, with 212 million square feet located along central Florida’s I-4 corridor. It also boasts the strongest rate of demand in Florida, with the market recording 1.9 million square feet of net absorption over the past year. Tampa continues to lead in job growth, particularly in sectors like education and health services, professional and business services, and trade, transportation, and utilities. Tampa’s industrial market has seen its vacancy stabilize in Q1 2024. This is largely due to a shift in the construction pipeline towards build-to-suit projects. Growth in asking rents has also stabilized, with a forecast suggesting continued growth through 2025.
Tampa’s economy has demonstrated resilience, ranking among the top 10 of the 50 largest metros in the nation in terms of GDP and job growth.
Market Performance
Industrial rental rates have surged by an impressive 69.1% in the last five years, reaching a new peak of $12.50 per square foot in Q1 2024. Speculative construction in Tampa has slowed down over the past year. This accounts for less than 40% of the current active pipeline, totaling 5.6 million square feet as of Q1 2024. With the construction pipeline being 75% pre-leased, Tampa’s vacancy is expected to hover around 4.5% through the end of 2025. These fundamentals of Tampa’s industrial market indicate ongoing confidence in the market’s stability and growth potential.
Industrial property sale prices have not slowed down, averaging $140 per square foot in Q1 2024, showcasing a 5% increase year-over-year. As of Q1 2024 the 12-month sales volume is $895 million. Private buyers, usually consisting of high net-worth individuals, family offices, or fund-level equity, constitute over 80% of the buyers in the sub-$10 million price range.
Tampa By The Numbers | Past 12 Months | Source: CoStar Group
- Vacancy Rate: 4.8%
- Rent Growth: 10%
- Deliveries SF: 3.7M
- Sales Volume: $906M
