Polk County Industrial Market: Q1 2025 Snapshot

Guest Blog Post

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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