Prospective Tenants Must Look to New Construction as Existing Space Is 99% Leased
Summary:
Fort Myers, in Southwest Florida, has seen significant activity in new industrial development with 3.9 million square feet currently under construction, following the completion of 1.4 million square feet. However, recent completions have surpassed tenant move-ins, leading to a slight increase in vacancy rates to 2.4%, marking the first time the vacancy rate has averaged over 2% in a year. It’s projected that the vacancy rate will continue to rise, potentially peaking at around 6% by the end of 2024. Despite this increase, Fort Myers remains a desirable industrial market with strong tenant interest, particularly for spaces under 50,000 square feet. Vacancy is expected to normalize to 2% to 3% in the long term.