In Florida, Demand For Industrial Warehouses Is Going Strong

After years of fluctuations, from rapid growth to rising vacancy rates, Florida’s industrial market is showing signs of stability from Jacksonville to Miami.

Moving into 2025, the effects of economic shifts are shaping a unique business landscape, creating a more predictable environment for development. With the tension between supply and demand easing, business leaders are growing more optimistic.

But vacancy rates have risen in markets such as Miami. Leasing activity in cities such as Orlando and Jacksonville has slowed, with industrial tenants taking longer to finalize decisions. These delays can be attributed to ongoing uncertainty in capital markets and broader economic volatility, making tenants more cautious.

“Despite these fluctuations, the market continues to adapt and balance supply with demand,” said Stephanie Martinez, vice president of industrial at Catamount Constructors, a 100% employee-owned, nationwide general contracting and construction management company. “Florida’s industrial market is balancing while still enjoying a strong demand for build-to-suit.”

Catamount Constructors, with offices in Florida, Texas, Colorado and Georgia, boasts a national portfolio of more than 500 industrial projects. Projects include everything from distribution centers and maintenance facilities to research and development centers.

“While speculative opportunities and new construction have tapered off, we remain confident in a resurgence starting in 2025 and beyond as regions absorb recently completed projects,” Martinez said.

Speculative buildings, developed without specific tenants lined up, will continue to drive interest in key regions in the near future, she said. These projects offer flexibility for tenants, especially in areas with strong infrastructure and growth potential.

Build-to-suit developments also remain in high demand, providing long-term stability with custom, modern facilities while mitigating construction risks and costs, Martinez said. While fluctuations in the market, such as rising construction costs and labor shortages, have slowed growth in some regions, key markets such as Miami, Orlando and Tampa remain active, with steady demand for both speculative and build-to-suit spaces.

Florida’s industrial companies also continue to struggle with labor challenges, including a growing shortage of skilled workers and the rising cost of transportation. The state’s rapid population growth has strained labor availability, while the booming construction, logistics and manufacturing sectors continue to demand more skilled workers, Martinez said.

The Brightline commuter rail service, however, has the potential to offer a valuable solution by providing a fast, reliable and eco-friendly transportation alternative. By connecting major industrial hubs across the state, Brightline could ease the burden on roads, reduce transportation costs and help attract and retain workers by offering easier commutes.

Helping its clients navigate market fluctuations in the industrial sector, Catamount offers a comprehensive approach that minimizes risk and maximizes efficiency, said Ken Thomas, Florida project executive at Catamount.

“Catamount sets the standard in preconstruction services, ensuring strong project foundations through strategic planning, risk mitigation and collaborative process,” Thomas said. “Our expertise in focusing on efficient budgeting, precise scheduling and effective design delivers projects on time and on budget.”

By aligning with clients’ visions and leveraging deep industry relationships, including strong ties with trusted subcontractors and a thorough understanding of the Florida market, Catamount secures competitive pricing and offers insights that enhance operational efficiency, Thomas said. The firm’s expertise drives project success by ensuring high-quality execution, on-time delivery and cost-effective solutions.

In addition to its strategic preconstruction approach and strength of relationships, Catamount leverages its expansive geographic reach to gain deep insights into subregional markets and their dynamics to deliver best-in-class projects to clients, Martinez said.

“A key differentiator for Catamount is our proactive approach to delivering value beyond construction,” Martinez said. “With our attention to the full project life cycle, national reach and deeply rooted relationships, we don’t just build projects — we create opportunities.”

If a client is building a speculative project and Catamount learns of a national end user interested in expanding its Florida operations, the team immediately steps in to connect the dots, ensuring its clients’ success extends beyond just the build itself, Martinez said.

While markets like Jacksonville and Orlando continue to be the heavy hitters in terms of where developers and owners are delivering new industrial warehouses, there are other emerging markets in southwest and northwest Florida that are seeing increased industrial activity.

Industrial activity has increased in Pasco County, including a 500K SF build-to-suit, middle-mile distribution facility under construction by Catamount. These facilities connect larger distribution centers to last-mile locations, playing a crucial role in logistics networks, Thomas said.

Catamount is equipped to deliver industrial projects of any type, backed by its expertise in preconstruction planning, risk management and efficient execution, Thomas said.

Whether addressing shifting demand for speculative buildings or capitalizing on emerging opportunities, Catamount’s collaborative approach ensures clients benefit from strategic insights, accurate budgeting and timely project delivery, Thomas added. With a deep understanding of Florida’s industrial landscape and a commitment to value engineering, Catamount is a trusted partner for developers and owners looking to navigate market fluctuations and achieve long-term success.

Catamount’s combination of national scope and local, on-the-ground expertise has served it well as it helps its clients navigate the rapid boom-and-bust cycles of the coronavirus and postpandemic economy, Martinez said.

“Florida’s market dynamics, including its rapid population growth and expanding developed submarkets, demand a best-in-class approach to construction management,” Martinez said. “We understand the region and are able to deliver value to help our clients turn challenges into opportunities.”

 

Source: Bisnow