The Sarasota industrial market has recently stalled, with its pace of growth moderating after a period of significant expansion. This slowdown is largely attributed to consecutive years of above-average construction completions, which have increased the market’s inventory, coupled with notable tenant move-outs over the past year.
VACANCY RATE
The market’s vacancy rate has climbed considerably, now sitting at 7.8% as of the fourth quarter of 2025. Over the trailing 12-month period, this represents an increase of more than 350 basis points (3.5%). Concurrently, the 12-month net absorption has turned negative at (877,000) SF. This negative trend is a significant reversal from the positive absorption recorded the year prior, with a major contributing factor being United National Foods vacating its large 760,000 SF facility.
RENT GROWTH
Construction activity has added substantial inventory to the market, with roughly 1.4 million SF delivered over the trailing 12-month period. This volume of new space, much of which was completed with little preleasing, has contributed to the softening market conditions. As a result, asking rent growth has cooled to an increase of 3.2% over the past year, bringing the average asking rent to $13.40/SF as of Q4 2025. This current growth rate is roughly half the pace recorded this time last year.
INVESTMENT SALES MARKET
Despite the moderating leasing and development metrics, the investment sales market remains robust. Overall, $340 million in sales volume has been recorded in the Sarasota industrial market over the past year, which is well above the pre-pandemic annual average of roughly $100 million. The market is not overly reliant on institutional capital, with the bulk of trades being smaller in size, reflected by an average sale price of just $2 million.
ECONOMY
The broader Sarasota region, encompassing Sarasota and Manatee Counties, remains the largest market in Southwest Florida and continues to attract new residents and businesses. While the pace of growth has slowed from the pandemic-era surge, the region’s population has increased by 13.0% over the past five years, substantially outpacing the national growth rate of 3.2%. Industrial-using employment, however, has softened, rising only 0.6% year-over-year.
