Tampa industrial real estate market reports
Tampa’s industrial market is carrying the momentum from 2021 into 2022 by setting a record high for quarterly leasing activity at 4.2 million square feet (msf). Demand continues to surpass supply as over 600,000 square feet (sf) delivered in the first quarter, which leaves 6.4 msf under construction. With limited supply and strong demand, landlords keep increasing rents, resulting in 13% year-over-year growth.
As of the end of the first quarter of 2022, 6.4 msf is under construction in Tampa, with 58% of it concentrated in the Plant City/East Hillsborough submarket.
Tampa experienced positive net absorption throughout the first quarter, due in part to three large move-ins totaling 100K sf. However, with a couple of spec industrial projects being delivered, activity wasn’t as strong as it has been in past quarters.
Direct asking rent
Tampa’s overall asking rents jumped 13% year-over-year to $6.35 per square foot (psf). While the demand for premium industrial space persists, landlords with high-quality, class A logistic buildings continue to drive up rental rates.
Industrial availabilities remain relatively unchanged year-over-year, as newer inventory is being swept up as soon as it delivers. Tenants are seeking newer product with higher clear heights, more dock doors, and other features that fulfill the demands of today’s warehousing and logistic needs.
Tampa’s overall vacancy rate fell to 5% in the first quarter of 2022—its lowest since 2018. Demand continues to outpace supply and tenants are seeking larger spaces to keep up with consumer needs.
Industrial investment sale volume is trending upward and outpacing the volume from the last five first quarters. Pricing is up 30% year-over-year and started the new year at $121 psf.
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