Tampa, FL, February 24th, 2025–Written by Chase Collier, CCIM
The outlook for the Tampa industrial real estate market in 2025 remains strong, driven by high leasing activity, steady development, and a favorable investment climate. For the fifth consecutive year, leasing volume has exceeded 10 million square feet, demonstrating sustained tenant demand. However, vacancy rates have slightly increased to 6.3%, primarily due to the influx of new supply—though this remains within a healthy market balance. Rental rates have reached a record high of $12.50 per square foot, reflecting a 69.1% increase over the past five years, with expectations of continued growth.
On the development front, 3.8 million square feet of industrial space was completed in 2024, with an additional 5.6 million square feet currently under construction—75% of which is pre-leased, indicating strong tenant commitments. Speculative construction has slowed, now making up less than 40% of the development pipeline, signaling a strategic shift toward build-to-suit projects. Investment activity remains robust, with industrial property sales averaging $140 per square foot and total sales volume reaching $895 million over the past year. Private investors, including high-net-worth individuals and family offices, continue to dominate transactions under $10 million.
Land for large-scale industrial development in Tampa proper is very scarce. Only a few sites of 15+ acres remain to be developed, but we have seen some recent infill redevelopment opportunities trading at $500,000 to over $1.1 million per acre.
Tampa’s booming economy and growing population, which sees an average of 170 new residents per day, further fuel industrial real estate demand. The region’s economic expansion, supported by key industries such as financial services and technology, strengthens job growth and business activity. As a result, Tampa’s industrial market in 2025 is poised for continued resilience, offering opportunities for developers, investors, and businesses alike.
For more information on the industrial markets or if you have any questions, feel free to reach out to me, Chase Collier, at 813-287-8787×103 or chase@thedirtdog.com
