Tampa industrial real estate market reports

The industrial market is on track to smash records for the largest amount of inventory to deliver within a single year at 7.4 msf—an increase of 38% from 2021.

During the third quarter, net absorption remained positive, totaling 924,937 square feet (sf) and bringing the year-to-date total to 2.7 msf. Currently, there is 3.7 msf under construction that is expected to deliver by the end of the year. A strong positive absorption is expected in the fourth quarter to wrap up the year.

Demand across the industrial market continues to be at an all-time high, putting pressure on landlords to raise asking rates. Year-over-year asking rates have increased by 20% to $7.04 NNN per square foot (psf) and are not expected to retreat anytime soon.

Industrial availabilities remain at all-time lows. Occupiers are chasing high-quality warehouse space, leaving very little new inventory available in the market as it delivers.

Tampa’s overall vacancy is 5.5% at the end of the third quarter, remaining unchanged from last quarter. As demand continues to outpace supply, vacancy is expected to stay relatively low for the near future. 

Throughout the third quarter, the Federal Reserve increased interest rates twice by 75 basis points each. Industrial sales volume has seen a strong performance with $951 million in transaction volume for the year-to-date, which is the second highest in market history.