Ohio now has more top-10 markets than Florida despite slower pace of population growth
Midwest and East Coast markets dominate the list of top markets for industrial rent growth as of the second quarter of 2025, but the state of Florida is also well represented.
The Jacksonville and Orlando markets both landed on the list of top industrial markets with at least 100 million square feet of inventory in fourth and fifth place for year-over-year rent growth, with Tampa placing just outside the top 10.
Both markets have seen annual rent growth in the upper-5% range in the last year and are more than 400 basis points above the national average. They have also both experienced a brisk pace of population growth in recent years that has helped to fuel their respective industrial expansions.
The Orlando market leads the state of Florida for population growth and has for several years. Its industrial market has nearly double the total asset value of Jacksonville, is more than 40 million square feet larger, and has the highest average asking rents of any of the state’s primary markets north of the tri-county South Florida region.
The average rent in Orlando is $14.50 per square foot on a triple-net basis compared to $10.90 per square foot in Jacksonville. For perspective, the slightly larger Tampa market ranks near the middle of both areas at $13.00 per square foot. Orlando also sits at the center of the Florida peninsula, providing the best access among all primary markets to points both north and south.
At the northeastern tip of Florida, Jacksonville does not have the same geographical restraints as other industrial peer markets throughout the peninsula. This allows the market to reach not only most of the state but also a significant portion of the eastern seaboard within a day’s drive. It also has the state’s largest container port and the second-largest vehicle port.
Both areas are industrial development magnets
The Orlando market has expanded by more than 26 million square feet in the past five years, putting it comfortably ahead of Miami, while Jacksonville has grown by more than 20 million square feet.
Most of the recent industrial expansion in Orlando is now in the rearview mirror, with only 3.6 million square feet still underway, whereas roughly 8.4 million square feet of industrial space is under construction in the Jacksonville area. Large box distribution projects have comprised much of the development pipeline in both areas, although the pace of lease-up of those projects in recent years has been stronger in Jacksonville.
Most of Jacksonville’s new development in recent years has consisted of larger warehouses and distribution buildings. In the Orlando market, however, there has been an uptick in new buildings under 250,000 square feet.
Looking ahead
The pace of annual rent growth in Orlando is expected to reach the mid-6% range by the end of the fourth quarter, while growth is likely to cool to closer to 4% in Jacksonville as another 2.5 million square feet of industrial space scheduled for completion during the second half of the year increases competition for tenants and further limits the ability to push rents in the near term.