Tampa Bay Industrial Market: What 2025 Means for Owners and Tenants

Sydney Avolt
Sep 2
3 min read

Tampa Bay’s industrial market is experiencing a transition in 2025. Vacancy rates have risen to 6.5% — the highest level in nearly a decade — as older warehouses see more tenant departures and large-block leasing slows. While new supply continues to deliver, demand has not kept pace, creating both challenges and opportunities for market participants.

The Flight to Quality

The clear story this year is tenant preference for modern space. Buildings delivered in the last 10 years continue to outperform, recording over 4.5 million square feet of positive absorption in the past year. In contrast, properties built before 2016 have lost more than 1.5 million square feet of occupancy. Features such as taller clear heights, expanded trailer parking, and more efficient layouts are drawing tenants to Class A facilities, even at slightly higher rents.

The Cost Factor

While many companies are interested in upgrading to new space, the cost of tenant improvements remains a barrier. This is causing some businesses to optimize their existing footprint or explore locations in emerging submarkets where costs are more favorable.

Leasing Trends

Large-block activity (100,000+ SF) has slowed compared to prior years, with just five deals signed so far in 2025. Four of those five leases involved newly built facilities, underscoring the demand for modern product. On the other hand, smaller tenants under 50,000 square feet have been more active, signing nearly 380 leases in the first half of the year — a 10% increase over 2024.

Active Sectors

Tenant demand has been diverse, with logistics providers, food and beverage users, and construction-related companies leading leasing activity. Notable transactions include Cirkul’s lease at the newly built 301 Industrial Center and Roland Foods’ commitment at Lakeside Logistics II in Plant City.

What This Means for You

Owners of older facilities may need to consider upgrades, repositioning, or creative leasing strategies to stay competitive.
Owners of modern Class A space remain well positioned to capture demand, especially from logistics and food-related users.
Tenants may find negotiating leverage in older properties or secondary markets, where landlords are more motivated to fill space.

Looking Ahead

Several large leases are still in the pipeline, and if completed, they could help stabilize vacancy rates in the coming quarters. Until then, Tampa Bay’s industrial market is best described as a two-tiered story: modern facilities attracting strong interest, while older space faces challenges.

👉 At Cliggitt Realty, we help owners, tenants, and investors navigate these shifting dynamics. If you’re considering leasing, selling, or repositioning your industrial property, our team can provide the insight and strategies you need to maximize value.

My Take: While headline numbers like rising vacancies suggest headwinds, the story on the ground is more nuanced. Landlords with older product should consider reinvestment strategies or creative repositioning, while owners of modern facilities remain well-positioned to capture tenant demand. For tenants, the current environment may present opportunities to negotiate favorable terms, particularly in older product or in markets just outside the core.

As we move into the second half of 2025, we’ll be watching closely to see if delayed large deals land and help stabilize vacancy. Until then, the Tampa Bay industrial market is defined by two realities: older space facing pressure, and modern facilities continuing to shine.

If we can assist with any of your real estate needs, please contact me today!