IOS Market Deep Dive: Tampa

Population growth remains one of Tampa’s strongest tailwinds. Hillsborough, Pasco, and Polk counties continue to rank among the fastest-growing counties in the country, supporting a deepening labor pool and sustained demand from transportation groups, contractors, and service-based industrial users. As a result, many occupiers now view Tampa as a long-term strategic hub for statewide Florida operations rather than a secondary alternative to Orlando or Jacksonville.

TLDR

• Metro profile: Tampa continues to outperform national growth trends, driven by sustained in-migration, rising household incomes, and broad-based economic expansion across Central Florida.

• IOS lease economics: IOS leases signed during 2024 and 2025 generally range from $5,000 to $10,000 per acre per month, with average pricing near $7,000 per acre per month.

• Land values: IOS land prices increased approximately 28 percent from 2023 to 2025, with 2025 transactions typically ranging from $600,000 to over $1 million per acre.

• Demand drivers: Port Tampa Bay, the I-4 and I-75 corridors, and Florida-wide service coverage continue to fuel demand from logistics, contractors, and fleet-based operators.

• Market outlook: Limited industrial land, zoning pressure, and infill scarcity have created one of the tightest IOS environments in the Southeast, supporting strong competition for functional sites.

Market Overview

Tampa’s industrial market continues to outperform expectations relative to its size, supported by rapid population growth, a diversified employer base, and one of Florida’s most active logistics corridors. The metro benefits from direct access to I-4 and I-75, along with Port Tampa Bay, which anchors the region’s freight and distribution ecosystem. These advantages have helped Tampa emerge as a preferred operating base for e-commerce users, building materials distributors, HVAC and MEP contractors, and regional service providers.

Port Tampa Bay plays a central role in shaping industrial demand. Ongoing growth in containerized and bulk cargo volumes has strengthened the port’s importance as a gateway for Central and Southwest Florida. This activity has reinforced demand for nearby yard-intensive uses that support drayage, staging, and last-mile distribution.

Population growth remains one of Tampa’s strongest tailwinds. Hillsborough, Pasco, and Polk counties continue to rank among the fastest-growing counties in the country, supporting a deepening labor pool and sustained demand from transportation groups, contractors, and service-based industrial users. As a result, many occupiers now view Tampa as a long-term strategic hub for statewide Florida operations rather than a secondary alternative to Orlando or Jacksonville.

Industrial fundamentals reflect this momentum. Vacancy across core submarkets remains below national averages, new construction pipelines are limited, and absorption continues to be driven by users seeking efficient statewide reach. Market participants report steady leasing activity across Central and West Florida, with both regional operators and national credit tenants expanding their presence. While deal timelines have lengthened modestly, overall demand remains resilient and pricing has held firm.

IOS Market Fundamentals

Tampa’s geography, environmental constraints, and zoning framework have created a structurally undersupplied IOS market. Functional, well-located outdoor storage sites tend to transact and lease quickly, particularly those near major corridors and population centers. Tenant demand remains broad across equipment rental, transportation, utilities, freight, construction trades, and building materials users.

IOS activity is concentrated around Port Tampa Bay, the Ybor and Adamo corridors, East Tampa, Brandon and Seffner, and along the I-4 spine. These areas support a wide range of users tied to trucking, drayage, utilities, and contractor services. Inventory spans small infill yards near the port to larger multi-acre sites east of I-75, where zoning flexibility and land availability improve.

Sale pricing has continued to climb as industrial land becomes increasingly scarce. Average pricing has risen meaningfully over the past two years, with multiple owner-user transactions exceeding the $1 million per acre threshold in infill locations. Core Tampa sites typically command premium pricing, while nearby markets such as Port Richey along US-19, Plant City along I-4, and Sarasota offer relatively more affordable alternatives with room for expansion.

Rental rates have remained stable despite longer deal cycles. Infill IOS properties commonly achieve lease rates between $7,000 and $10,000 per acre per month, depending on site size, improvements, and proximity to arterial corridors. Paved yards with utilities, lighting, and stabilized surfaces continue to outperform, but even minimally improved gravel sites lease quickly due to overall scarcity.

Zoning Constraints and Long Term Growth

Zoning and land-use pressure remain defining challenges across the Tampa metro. Many jurisdictions in Hillsborough and Pinellas counties have tightened allowances for outdoor storage, pushing fleet users and contractors east toward Brandon, Plant City, and Lakeland. Stormwater, paving, and permitting requirements have increased both development costs and timelines, further limiting new IOS supply.

Understanding Tampa’s long-term development trajectory is critical for underwriting future IOS demand. Several submarkets are projected to experience outsized population growth and increased density over the next fifteen years. Plant City, for example, is expected to see substantial population expansion by 2040, reinforcing demand for service-oriented industrial uses. While growth projections alone do not drive investment decisions, positioning assets in areas aligned with future expansion trends remains a key strategic consideration.

This regulatory and land-constrained environment mirrors patterns observed in other maturing IOS markets such as Charleston, Denver, and Nashville. Tampa is now entering a similar phase, where scarcity precedes accelerated rent growth and land price appreciation. Competition remains particularly intense for paved or improved sites under five acres, and even basic yards near the port and contractor corridors continue to lease rapidly.

Bottom Line

Tampa’s IOS market remains one of the strongest and most supply-constrained in the Southeast. Infill scarcity, zoning pressure, and persistent demand from logistics users, contractors, and fleet operators continue to support firm rental rates and rising land values. For well-located, functional IOS assets, Tampa offers scarcity-driven value supported by durable long-term fundamentals.

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