Southwest Florida Industrial Market Report Q2 2026
Punta Gorda | Fort Myers | Naples
Southwest Florida’s industrial market remains on solid footing as the region continues to benefit from strong demographic growth, expanding business activity, and ongoing investment in logistics infrastructure. Over the past year, the market posted 388,000 square feet of positive net absorption, while vacancy held at a manageable 8.8% despite the delivery of 765,000 square feet of new industrial space. Asking rents increased 2.2% year-over-year to $15.22 per square foot, reflecting continued tenant demand even as leasing activity has normalized from the rapid pace seen in recent years. Market conditions vary across the region, with Fort Myers serving as the largest industrial market and primary distribution center, Naples continuing to experience tight conditions due to its limited industrial inventory, and Punta Gorda benefiting from steady growth as development expands northward.
Although elevated interest rates have created a more disciplined investment environment, industrial fundamentals remain healthy. With $224 million in sales volume and 1.7 million square feet currently under construction, Southwest Florida continues to attract both occupiers and investors seeking long-term growth opportunities in one of Florida’s fastest-growing regions.
By the Numbers
Q2 2026 | Source: CoStar Group, Inc.
- Sales Volume: $224M
- Price Per SF: $198
- Cap Rate: 7.5%
- Vacancy Rate: 8.8%
- Rent Growth: 2.2%
- Asking Rent Per SF: $15.22
- SF Under Construction: 1.7M
- SF Delivered: 765K
- SF Absorbed: 388K
Market Overview
- Punta Gorda continued to absorb recent deliveries while healthy population growth and business expansion supported long-term industrial demand.
- Fort Myers worked through a significant wave of new supply, though demand for modern industrial facilities and investor activity remained resilient.
- Naples maintained some of Southwest Florida’s strongest industrial fundamentals, supported by low vacancy and a highly constrained development pipeline.
Southwest Florida Supply & Demand Dynamics
Source: CoStar Group, Inc.
Southwest Florida Population Growth by Market
Source: Oxford Economics
Punta Gorda Industrial Rents Rise 2.1% Despite Elevated Vacancy
Demand
Punta Gorda’s industrial market remained fundamentally healthy during the second quarter despite softer leasing conditions. Vacancy increased to 12.0% as the market continued to absorb recently completed space, while annual rent growth moderated to 2.1%. Asking rents averaged $13.08 per square foot, reflecting continued landlord pricing power even as occupiers gained slightly more negotiating leverage. Strong population growth and business expansion across Southwest Florida continue to support long-term demand for industrial space.
Rent Per SF vs Rent Growth
Source: CoStar Group, Inc.
Supply
Development activity remained active, with approximately 260,000 square feet under construction. While the current pipeline has contributed to higher vacancy in the near term, new industrial development remains relatively measured compared with many larger Florida markets. As construction activity moderates and available space is leased, market fundamentals are expected to gradually rebalance.
Completions vs Vacancy Rate
Source: CoStar Group, Inc.
Investing
Industrial sales volume reached $54.1 million during the quarter, highlighting continued investor interest despite a higher interest rate environment. Assets traded at an average of $135 per square foot, while cap rates averaged 8.5%, reflecting the higher yields typically associated with smaller secondary markets. Investors continue to view Punta Gorda as an attractive long-term growth market supported by favorable demographics and expanding industrial demand.
PPSF vs Cap Rate
Source: CoStar Group, Inc.
Investment Highlights
Volume
- $54.1M in Q2 industrial sales volume
- Private capital continues to account for the majority of acquisitions
Pricing
- 8.5% average cap rate, offering attractive yields relative to major Florida markets
- $135/SF average sale price reflects the market’s value-oriented pricing
Fort Myers Industrial Posts 9.5% Vacancy as New Supply Enters Market
Demand
Fort Myers’ industrial market continued to work through a substantial wave of recently completed inventory during the second quarter. Vacancy reached 9.5%, its highest level in roughly a decade, as new supply outpaced absorption and available space remained concentrated in recently delivered logistics properties. Asking rents averaged $13.75 per square foot, with annual growth moderating to 2.5% as elevated vacancy created more options for tenants. Demand remains strongest for modern facilities, while leasing activity among smaller occupiers has held steadier than demand for large blocks of space.
Rent Per SF vs Rent Growth
Source: CoStar Group, Inc.
Supply
Approximately 1.5 million square feet remained under construction, keeping Fort Myers’ development pipeline elevated despite a slowdown from recent peaks. Construction is concentrated in a limited number of projects, including Amazon’s 750,000-square-foot robotics fulfillment center, which accounts for roughly half of the active pipeline. A significant portion of space underway is preleased, reducing some near-term supply risk, although speculative projects will continue to influence vacancy as they move through lease-up.
Completions vs Vacancy Rate
Source: CoStar Group, Inc.
Investing
Industrial sales volume totaled $123 million during the quarter, reflecting continued investor activity across the market. Assets traded at an average of $148 per square foot, while cap rates averaged 8.4%, offering higher yields than many larger industrial markets. Recent transactions have favored newer, well-leased properties, with investment activity particularly concentrated in South Fort Myers and San Carlos.
PPSF vs Cap Rate
Source: CoStar Group, Inc.
Investment Highlights
Volume
- $123M in Q2 industrial sales volume
- Larger portfolio and multi-building transactions supported overall volume
Pricing
- $148/SF average pricing, supported by demand for newer industrial product
- Pricing remained resilient despite elevated vacancy and ongoing lease-up risk
Naples Industrial Development Remains Limited at 33.9K
Demand
Naples’ industrial market maintained tight operating fundamentals during the second quarter, with vacancy holding at 4.6% despite recent negative absorption. Asking rents averaged $18.46 per square foot, the highest among the Southwest Florida markets reviewed, while annual rent growth moderated to 2.1% following several years of stronger gains. Demand remains concentrated among smaller local distribution, construction, service, and specialty manufacturing users, supporting healthy occupancy across the market’s predominantly small- to mid-sized industrial inventory.
Rent Per SF vs Rent Growth
Source: CoStar Group, Inc.
Supply
Development activity remained limited, with approximately 33,900 square feet under construction during the quarter. The modest pipeline reflects Naples’ constrained land availability and development patterns that favor smaller flex and warehouse properties rather than large-scale logistics facilities. Limited new supply should help preserve relatively tight vacancy and support existing asset performance, even as leasing demand moderates from earlier cycle highs.
Completions vs Vacancy Rate
Source: CoStar Group, Inc.
Investing
Industrial sales volume totaled $60.9 million during the quarter, reflecting continued investor interest in the market’s limited inventory and high barriers to new development. Assets traded at an average of $198 per square foot, while cap rates averaged 7.7%, offering attractive yields alongside long-term appreciation potential. Private investors and owner-users remain the market’s most active buyers, with transaction activity generally concentrated in individual properties rather than large portfolios.
PPSF vs Cap Rate
Source: CoStar Group, Inc.
Investment Highlights
Volume
- $60.9M in Q2 industrial sales volume
- Private investors and owner-users continued to drive transaction activity
Pricing
- 7.7% average cap rate, providing attractive yields relative to pricing
- Constrained development and low vacancy continue to support long-term asset values
