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Market Report

Tampa-St. Petersburg Industrial Market Report

Midyear 2023

Vigorous Demand for Industrial Space
Warrants Tampa’s Incoming Supply Wave

Metro leads the nation in rent gains. Robust population and economic growth continue to fuel industrial space demand from retailers, e-commerce and logistics firms. Tampa-St. Petersburg’s location along the pivotal Interstate 4 Corridor has also drawn significant interest from distribution companies looking to establish a regional hub. Since April 2022, roughly 34 new leases each totaling at least 100,000 square feet have been signed. This helped lower the rate of available stock to 3.8 percent in March of this year, nearly 100 basis points below the pre-pandemic level. Tenant competition for small bay space is even more fierce, as vacancy in buildings under 100,000 square feet hovered in the low-2 percent range during the first three months of 2023. Strong demand for both large and small spaces drove an annual rent gain of 39 percent metrowide entering the second quarter, a pace that leads all major U.S. markets.
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