TAMPA, FL—Talk of the Panama Canal and dredging of the Miami River have lit up the industrial market in the Magic City. But Miami is hardly leading the Florida—or the national—charge on the industrial occupancy front.

Yes, industrial real estate is recovering. Cushman & Wakefield reports robust absorption, declining vacancies and rising rental rates in the first quarter of 2014. Supply is tightening, which CushWake figures may have contributed to a slowdown in leasing velocity through January, February, and March, but industrial construction pipeline has ramped up to meet strengthening demand.

“First quarter performance continued the notable progress industrial real estate experienced in 2013,” says CushWake's John Morris, leader of Industrial Services for the Americas. “Domestic manufacturing continues to gain traction, driving increased production and shipments, and electronic fulfillment continued to expand. As a result, the economic environment for our sector is the best we have seen in many years.”

Indeed, industrial space occupancy rose 31% year-over-year, with 30.5 million square feet of absorption, compared to 23.2 square feet in the first quarter of 2013. Atlanta led the nation, with 5.1 million square feet of absorption. But, again, for all the talk about Miami's industrial the Magic City didn't even make it into the top 10. But other Florida cities did.

In fact, three Florida cities are among the top 10 industrial markets in the nation with the lowest vacancy rates. Those cities are: Lakeland at 4.9% in sixth place; Saint Petersburg/Clearwater in seventh place at 5%; and Tampa at 10th place with 6%.

“Moving forward, we are watching a number of private sector developments that will likely add near-term momentum to the industrial real estate market's positive trending,” says Morris. “Among them, we anticipate a continuing revival of the housing sector, the activation of pent-up consumer demand and rising export volume. Most importantly, we are beginning to see a shift in business attitudes and a greater willingness to take risk, which will lead to stronger employment growth and increased investments in people and equipment.”