Q2 2025 Space Coast Industrial Market Report

Highlights

• The Space Coast market is attractive to investors for its proximity to Port Canaveral and the space industry.
• Private investors made up the majority of buyers over the past five years at 64%, followed by user-buyers at 22%.
• Sales volume has grown slightly over the past 12 months, despite higher borrowing costs, with $206 million changing hands during this timeframe.

 

Brevard County Demographics

• Unemployment Rate: 3.7%
• Households: 251,889
• Current Population: 658,447
• Median Household Income: $75,817

 

Construction

New developments are decreasing across the county with 148,000 square feet on the way. This is a large decrease from the 410,000 square feet completed in the past year. Logistics properties account for the most additions, followed by flex facilities. The largest facility coming to the market is a 100,800-square-foot property underway in Titusville that is expected for completion at the start of 2026. While developments have remained slow in recent quarters, a new project is scheduled to break ground in 2026. Hines is planning on starting a new industrial facility in the Space Coast Innovation Park. The firm signed more than 3 million square feet here, and they have already reported interest from multiple tenants to acquire the space.

 

Space Coast Vacancy and Rent

Vacant space has increased in Brevard County, with specialized and flex properties driving the uptick by 2.4% and 3.3%, respectively. Yet, Brevard County still notes one of the lowest vacancy rates in Florida. Meanwhile, rent growth has decreased here. Brevard County recorded rent growth of 3.5% at the end of the second quarter, which is ahead of the national average. Moving forward, forecasts project rent growth to record an uptick at the start of 2026, with an increase to the mid-4% range.

 

By the Numbers

Source: CoStar Group, Inc.

• SF Delivered: 3.9K
• SF Absorbed: 131K
• SF Under Construction: 148K
• Vacancy Rate: 3.5%
• Rent Growth: 3.5%
• Market Asking Rent per SF: $13.62

 

Space Coast Supply and Demand Dynamics

Source: CoStar Group, Inc.

 

Rent Activity

Source: CoStar Group, Inc.

Sales

About 20% of the $206 million in deal volume over the past year is attributed to one transaction. This deal occurred in January when Hines acquired the Titusville Logistics Center for $42.2 million. Meanwhile, the remaining transactions fell in the logistics segment, which comprised $124 million in sales. With this activity, the price per square foot ranged around $120, with cap rates in the 9.0% range. New developments in the space industry may also increase sales as projects in this segment rise in the years ahead.