Tampa-St. Petersburg Industrial Market Report

Rising rents factor into tenant choices. Tampa-St. Petersburg expects the fastest pace of rent growth this year among major Southeast markets, bringing the average asking rate up to the third highest in Florida and doubling the metro’s 2019 mean. Rising rents may lead some firms to opt for lower-cost space in Central Florida, contributing to some of this year’s vacancy lift. Still, companies have exhibited a willingness to accept rising asking rents, and there are several large-scale move-ins expected in 2024. Axis Redistribution and Polyglass USA, Inc. will each move into roughly 200,000-square-foot properties in Plant City, reflecting improved leasing in more inland areas better shielded from natural disaster and with larger available spaces. Elevated in-migration to Tampa-St. Petersburg has also resulted in brands like Target increasing warehouse space. By the end of 2028, the metro is expected to draw more than 171,000 new residents, likely enhancing tenant demand for inventory storage space.