Tampa-St. Petersburg Industrial Market Report

Market rents no longer a discount, but tenant demand is unfazed. In just a three-year span, the average asking rent for industrial facilities in Tampa-St. Petersburg surged from a per-square-foot measure in the mid-$6 range to exceed $10 entering 2023. The 57 percent growth in asking rates since 2019 ranks as the third fastest among major industrial markets nationally during that span. Despite vacancy trending up since hitting an all-time low at the mid-point of 2022, rents will continue to climb this year, supported by sturdy demand and new modern facilities coming online. While Tampa-St. Petersburg may no longer have a certain appeal to cost-sensitive firms, robust job gains and demographic trends in the metro — alongside the greater region — warrant user expansions and new entrances. Best Buy will occupy a 275,000-square-foot warehouse near Lakeland in March, while 7-Eleven plans to move into a 150,000-square-foot distribution center in the same corridor of Interstate 4 this August. Packaging company Ball Corporation will also open several manufacturing hubs during 2023. Diverse demand for a variety of industrial subtypes reinforces longer-term sector tailwinds present in the metro.