If you thought Polk County’s industrial market might slow down in 2025—think again.
The first quarter came in hot, with tenant demand, new deliveries, and leasing activity all surging. But behind the bold numbers, a more nuanced story is emerging—one that reflects both the strength of the market and a few signs that developers and investors are becoming more selective.

Tenant Demand? Strong and Steady.
Net absorption reached more than 851,000 square feet in Q1—nearly a 600% increase over the previous quarter. That kind of demand isn’t a one-off. It’s a sign that Polk County continues to be a key location for companies looking for cost-effective space with excellent access to Florida’s population hubs. Positioned between Tampa and Orlando, the region reaches over 11 million consumers within a 100-mile radius.

New Supply Hits Fast.
Six new industrial buildings were delivered in Q1, totaling more than 1.13 million square feet. Each averaged nearly 190,000 SF, bringing total available space in the market to just over 9.28 million square feet. It’s one of the largest delivery waves Polk has seen recently, reinforcing confidence in long-term demand.

Vacancy is Up—But It’s Not Even Across the Board.
Overall vacancy rose to 9.10%, up 5.81% from Q4 2024. But submarket performance varied. South Polk posted the lowest vacancy at 6.5%, while North Polk climbed to 11.3%. These differences highlight how location, product type, and timing can make all the difference in lease-up velocity.

Construction Activity Slows.
Following the surge of new deliveries, developers took a step back. Space under construction dropped almost 61% compared to Q4. This cooling-off period suggests a cautious—but smart—approach to managing future inventory levels.

Sales Volume Down, Confidence Holding.
Sales activity declined 58.4%, but the average price per square foot held at $115, and cap rates stayed steady at 7.5%. Investors may be more measured in their decisions, but they haven’t pulled away from Polk. With 17.6% population growth since 2020 and a steady stream of 85 new residents per day, the fundamentals remain strong.

• Market Indicators:
  • CPI Core (12-month % change): 3.10%
  • Polk Unemployment Rate (February): 4.50%
  • Polk Population Growth (Since 04/01/20): 17.6%
  • Net Migration to Florida / Polk per day: 1,280 / 85

The Ruthvens: Committed to Polk’s Growth.
The Ruthvens are a third-generation, family-run Lakeland company established in 1957, with expertise in developing, managing, and leasing industrial space. We own and manage over 4.5 million square feet across 94 warehouse buildings along the I-4 corridor. Our brokerage services represent an additional 2 million square feet in Polk County. The Ruthvens are actively involved in community, philanthropic, and industry leadership.

​Access the full report HERE.

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Dr. Dixon was chosen from a highly competitive pool of applicants nationwide. She joins 32 other chamber of commerce executives, economic development professionals, and association leaders from across the country.

The Business Leads Fellowship Program equips business leaders with the knowledge, tools, and network to tackle critical education and workforce challenges in their communities. This specialized Master Class will focus on addressing the growing child care crisis — a barrier to workforce participation and economic growth in many regions.

​The program kicks off with an in-person session in May 2025 in Boise, Idaho, followed by a series of virtual learning sessions. Participants will connect with national experts, study successful community models, and develop strategies to support local child care solutions.

"As a single mother and former educator, I understand firsthand how critical access to affordable, high-quality child care is for working families. This issue isn’t just personal — it’s a workforce issue and an economic issue. I’m honored to represent the Lakeland Chamber of Commerce in this national effort to create real, community-driven solutions that support both our families and our local businesses."

Through this program, Dr. Dixon will help build a national community of practice focused on addressing child care challenges, positioning the Lakeland Chamber of Commerce as a local leader in workforce and family support initiatives.

The Lakeland Chamber of Commerce Advocacy Committee, along with community partners from Lakeland Electric and the Bartow Chamber, conducted the Chamber's annual Capitol Visits to meet with legislators to discuss the Chamber's 2025 Legislative Priorities.

Our friends at the Florida Chamber of Commerce kicked off our Capitol Visits with an overview of progress during the legislative session, issues on the watchlist, as well as a presentation of the state of education in Polk County. Attendees then met with all members of our local delegation, including Senate President Ben Albritton, Senator Colleen Burton,  Representative Jennifer Canady, Representative Josie Tomkow, Representative Jennifer Kincart Jonsson, and Representative Jon Albert.

On Wednesday, April 2, 2025, the House Ways & Means Committee advanced Proposed Committee Bill WMC1, which includes a reduction of the Florida-only Business Rent Tax from two percent down to 1.25 percent, saving local businesses approximately $310 million annually. Florida remains the only state in the nation that charges a tax on commercial leases, which puts Florida’s job creators at a competitive disadvantage compared to every other state in the nation. The reduction in this Florida-only tax will allow local businesses to hire new employees, reinvest in their business, and invest in their communities.

As negotiations with the Senate are ongoing, the Florida Chamber is actively engaged with lawmakers in the House and Senate working to ensure business-friendly tax relief, especially a reduction of the Florida-only Business Rent Tax, is included in the final product.

Through the Business Rent Tax Coalition, the Florida Chamber has led the effort to fully repeal this tax, starting with its first reduction from six percent to 5.8 percent in 2017. The Chamber remains committed to advocating for further tax reductions that support Florida local businesses, aligning with the Florida 2030 Blueprint goal of making Florida’s business tax climate the best in the nation by 2030.

Source: Florida Chamber of Commerce