Port St. Lucie Industrial Market Report

Port St. Lucie Industrial Market Overview

Industrial properties in Port St. Lucie are experiencing rapid growth, and the metro has seen the strongest quarter on record for new space deliveries. The increased deliveries have led to higher vacancies in previous quarters, which are beginning to decrease as of Q3 2024. With new inventory entering the Port St. Lucie industrial market, renter demand is growing, and rent growth remains competitive.

 

Port St. Lucie By the Numbers

• Cap Rate: 8.0%
• Sale Price Per SF: $125
• Average Sale Price: $2.1M
• Rent Growth: 6.1%
• Sales Volume: $53.3M

Last 12 Months | Source: CoStar Group

 

Market Performance

The vacancy rate in Port St. Lucie has declined in the last six months after the peak at 35.4% in Q4 2023. In Q2 2024, the vacancy rate was 7.7%, down from the 29.6% reported in Q1 2024. The increase in industrial inventory has resulted in a rise in renter demand. Due to the increased absorption in the last year, rent growth continues to outpace the national average. Port St. Lucie delivered 4.5 million square feet in the previous 12 months, nearly half of which was delivered in Q1 2024. In addition to the construction completions, the industrial market can expect another 760,000 square feet underway as of Q3 2024, expected to be completed by the end of 2024.

 

As of Q3 2024, rent growth remains strong at 6.1%. While this is below the record high of 12.3% in Q3 2022, Port St. Lucie still leads ahead neighboring Melbourne and Palm Beach County industrial markets.

 

Port St. Lucie’s leasing activity has increased by 15% in the last year. Just over 600,000 square feet of industrial space was leased in the trailing 12-month period as of Q2 2024. In the first six months of 2024, 30 transactions took place, with a total sales volume of $53.3 million and an average sale price of $2.1 million.