As the U.S. economy showed signs of recovery, Southwest Florida’s local economy mirrored those conditions marked by steady job and income gains. This increase was good news to the metro area industrial market, which maintained consistent positive performance throughout the third quarter. Key indicators pointed towards robust growth in leasing activity and absorption. At the end of the quarter, only 2.7% of the region’s industrial space was vacant, the lowest since 2018, despite the almost 3.1M square feet of new construction added to the market during that period. The continuous delivery of industrial buildings, along with high demand, continued to drive asking rental rates, which increased 19.1% in the last three years, now ranging between $8.00-$15.00 per square foot. In addition, absorption trended positive for the twelfth consecutive quarter with year-to-date absorption over 1.7M sq. ft., the strongest first three quarters recorded. The overall lift in the national economy and solid job growth in construction services will continue to positively impact the region’s industrial market throughout the end of the year.
Southwest Florida Industrial Market Report 2021 Q3