Is keeping up with trends important? Yes, and in every single industry. Florida’s industrial real estate market is one of the main ones undergoing significant shifts in 2025. This is marked by rising rents and fluctuating vacancy rates.
These trends have a direct impact on surplus buyers. This is because of how they rely on industrial spaces for storage, distribution, and operations.
Hence, the clear consequence of rising rents and low vacancies is that costs are rising everywhere, but reducing profit margin.
Understanding the current landscape is crucial to making informed and smart decisions. Costs are always fluctuating in products and other aspects, but it is key to capitalize on market opportunities.
Coastal Surplus Solutions has been supporting surplus buyers for over a decade. We navigate every trend and how markets fluctuate. Rising rents and low vacancies are no exceptions.
This is why we want to go through the latest industry real estate concerns in Florida. Teach you how you can plan for the future by knowing how they are affecting your surplus project.
Industrial Market Overview: Rising Rents Amid Low Vacancies
Understand the industrial market in question is where everyone must start.
Aside from planning and structuring your surplus goods and liquidation deals, take a step back. Remember that other aspects matter, such as planning and understanding logistics and inventory.
The second main expense for a business is the place where operations and inventory will take place and be stored.
In terms of real estate and this industrial market in rents and vacancies, Florida has increased from 3.3% to 5% in the vacancy rate. This is mostly limited to South Florida, as reported by Lee & Associates Florida Q1 report.
While the rate is alarming, as around 2.5 million square feet have been absorbed, rents are a bit more positive.
Most renters offer spaces for $17 per square foot, making it profitable for bulk buyers and the industrial market.
Other areas of the state go from 6 to 7% in vacancy rates, but rents continue to increase. This is mostly seen in Tampa or Southwest Florida, making it hard for businesses to find the right places.
While new constructions and ongoing developments will deliver around 1.5 million square feet of new space in Tampa, this is still not enough.
Avison Young’s Tampa Industrial Market Q1 report remains positive regarding this new space for the market. However, it highlights how demand for infill and last-mile logistics locations influences increasing rent.
It is a tough market, and with fluctuations all over the state, it is a challenge to keep up with changes.
Implications for Surplus Buyers
- Higher costs for industrial space
The main issue lies in facing increased expenses for warehousing and distribution facilities.
Since surplus goods and bulk purchasing are only part of the expenses, higher costs in real estate impact profit margins.
While large businesses manage to reduce costs in other areas, small-sized businesses suffer. After all, they need storage, and costs are not allowing for affordable options.
- Limited availability and strategic location premiums
Prime locations are up in the competition ladder.
Due to low vacancy rates in key submarkets, finding affordable spaces in prime locations is nearly impossible.
Surplus buyers need to act quickly and find solutions or alternative locations to secure industrial spaces. This is while considering profits and finding suitable areas for operations.
How Coastal Surplus Solutions Supports Buyers
Florida’s dynamic industrial real estate market requires expertise and agility.
Coastal Surplus Solutions supports sourcing, streamlining logistics, and shipping of surplus goods.
Since we work directly with bulk buyers and connect them to surplus goods, we have to understand the difficulties in today’s market.
We offer tailored support that helps you minimize losses and focus more on what brings recurring business:
- You find flexible sourcing and storage solutions with us. They adapt to fluctuating industrial space availability and costs.
- Logistics optimization offers speedy timelines and less inventory or surplus goods in your spaces.
- Our team stays updated with every change in all markets. This helps us provide you with insights that are relevant to your industry and the surplus goods you source with us.
Our extensive list of services and experience enables surplus buyers to maintain operational efficiency. All this despite rising rents and shifting vacancy rates.
We cover all of Florida. Hence, you can count on the team regardless of your specific location in the state.
Contact us today and start working towards the future despite all obstacles.