What's Happening?
Florida's industrial real estate markets in Tampa and Orlando are showing divergent trends. Tampa has maintained a strong performance with over 10 million square feet of annual warehouse leasing for five consecutive years, while Orlando is recovering from a period of rising vacancies. In Q3 2025, Orlando achieved 2 million square feet of positive net absorption, earning a spot in CBRE's top 10 U.S. markets for industrial rent growth in 2026. Tampa's market is characterized by low vacancy rates and high rent growth, while Orlando is expected to see significant rent increases as the market stabilizes.
Why It's Important?
The contrasting performances of Tampa and Orlando highlight the dynamic nature of Florida's industrial real estate market. Tampa's consistent growth
underscores its role as a logistics hub, driven by population growth and demand for warehouse space. Orlando's recovery indicates a potential shift in market conditions, offering opportunities for investors and developers. The industrial sector's performance is crucial for Florida's economy, as it supports job creation and economic development. The anticipated rent growth in both cities suggests a positive outlook for the state's industrial real estate market.
