The Greater Tampa area continues to demonstrate resilience and robust growth in the industrial real estate market. Recent months have seen significant transactions, substantial new construction, and notable shifts in rental trends and tenant demand.
Significant Transactions
One of the most prominent recent deals was by Basis Industrial, a Delray Beach-based investment firm, that launched a fund to complete the acquisition. In January 2025, Basis Industrial entered into a purchase and sale agreement to acquire a substantial industrial portfolio in Tampa comprising 472,512 rentable square feet across 18 buildings. This acquisition is notable due to its strategic pricing—approximately 50% below replacement cost—highlighting Basis Industrial’s aggressive growth strategy and confidence in the Tampa market.
Current Rents and CAM
Industrial rental rates in Tampa have reached an all-time high, averaging approximately $12.50 per square foot. This represents an impressive increase of 69.1% over the past five years, driven by strong tenant demand and limited available inventory.
Common Area Maintenance (CAM) charges have also seen upward pressure, typically ranging between $2.50 to $3.75 per square foot, depending on the property’s location, condition, and services included. Higher CAM rates have been particularly evident in newer industrial parks, reflecting the increased costs associated with property upkeep, security, and amenities.
Construction and New Supply
As of early 2025, the Greater Tampa area has approximately 5.6 million square feet of industrial space under construction. Notably, around 75% of this pipeline is already pre-leased, underscoring the strength of tenant demand. The construction activity primarily includes large build-to-suit and logistics-focused facilities.
High Demand for Small-Bay Infill
Despite extensive new construction, small-bay infill industrial properties (spaces generally under 20,000 square feet located close to population centers) remain heavily in demand, yet supply remains scarce. This segment has proven extremely attractive for smaller businesses, e-commerce operations, and service-oriented industries that require proximity to their customer bases. The scarcity of these spaces has created upward pressure on rents in this sector, sometimes exceeding market averages significantly.
Vacancy Rates and Absorption
The overall vacancy rate in the Tampa industrial market currently stands around 6.3%. Although this reflects a slight increase—primarily due to a surge of new deliveries—the vacancy rate remains historically low, indicating continued robust tenant demand.
Absorption, which measures net space leased minus vacated space, remains strong. The Tampa market has consistently recorded annual absorption figures above 10 million square feet over the past five years, illustrating sustained leasing velocity and market confidence.
Asking Rent Growth
Industrial rents continue to escalate due to high tenant demand coupled with limited available space, particularly in the small-bay segment. This upward trend is anticipated to persist as tenants compete for the limited inventory, further driving asking rents upward across all industrial asset classes.
Market Outlook
The Tampa industrial real estate sector is positioned for ongoing growth. Investors and tenants alike are drawn to its strong fundamentals, robust economic environment, strategic geographical position, and significant logistical advantages. However, challenges remain, particularly in addressing the acute shortage of small-bay infill spaces, which may drive developers to innovate and explore creative solutions to meet market demands.
As industrial real estate continues to thrive in the Greater Tampa area, stakeholders should monitor evolving market dynamics closely, particularly rent and CAM trends, vacancy rates, and absorption figures, to capitalize effectively on emerging opportunities.
For investors looking to navigate Tampa’s evolving industrial real estate market, having the right expertise is crucial. Whether you’re searching for high-yield opportunities, need guidance on market trends, or want to secure prime industrial space before demand pushes prices even higher, Florida ROI is here to help.
Contact Florida ROI today for expert insights, tailored investment strategies, and exclusive access to commercial real estate opportunities in the Greater Tampa area. Let’s turn market trends into profitable investments!
Frequently Asked Questions
Q: What is the current vacancy rate for industrial properties in Tampa?
A: The vacancy rate stands at approximately 6.3%, reflecting strong tenant demand despite new developments.
Q: How much have industrial rental rates increased in Tampa over the past five years?
A: Rental rates have surged by 69.1%, now averaging around $12.50 per square foot.
Q: Why is there high demand for small-bay industrial spaces in Tampa?
A: Small-bay spaces under 20,000 square feet are in short supply and highly sought after by e-commerce, service industries, and small businesses needing close access to their customer base.
