Industrial landlords in Tampa, Florida, would likely like to move past and forget about the first quarter of 2025.
Multiple key categories slumped as an influx of supply entered the market, as highlighted in a report from Savills. For one, asking rents dropped by 12.9 percent to $8.73 per square foot NNN.
"Landlords lowered expectations amid rising supply and weakened demand," Savills wrote.
In the first quarter, nine million square feet of product entered the market.
Another category that suffered as a result of high supply, was vacancy, which ticked up by 140 basis points to 8.2 percent.
Net absorption was about the same quarter-over-quarter and up year-over-year, at 1.1 million square feet. However, Savills said that the number "remains significantly below the five-year quarterly average."
Also, Savills added that "As in the prior quarter, the 1.1 msf recorded was largely attributable to a single tenant—Coca-Cola Beverages Florida—occupying a newly built distribution facility in East Tampa."
Cirkul signed the largest lease, thanks to its new 175,500-square-foot deal in East Tampa. Whitehall Products and The Lithium Battery Company ranked second and third with their 80,689 and 65,000-square-foot renewals, respectively. Also, Lykes Cartage Company and iGas USA cracked the top five with their 50,601 and 48,391-square-foot leases, respectively. All of these deals were in East Tampa except Lithium Battery, which was in the West Hillsborough/Downtown submarket.
Savills did not provide an outlook for Tampa's industrial sector.
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