The Sarasota region, encompassing Sarasota and Manatee Counties, remains the largest market in Southwest Florida and continues to draw new residents and businesses, even as its torrid pandemic-era growth has moderated. Over the past f ive years, the area has added roughly 110,000 residents, a 12.8% increase that far surpasses the national rate and has fueled significant expansion in industrial, multifamily, and retail development. With a current population of over 940,000, in-migration continues to bolster the local economy, though both population and employment growth have cooled as migration patterns normalize. Industrial-using employment has similarly softened, yet the region still benefits from major manufacturers such as PGT Innovations, Sun Hydraulics, and ASO, which help anchor its economic base. While the rapid growth of recent years has eased, Sarasota’s diversified economy, strong healthcare and manufacturing presence, and enduring appeal to both retirees and working-age residents support a positive, sustainable long-term outlook.

 

Sarasota Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 4.0%
• Current Population: 946,073
• Households: 419,618
• Median Household Income: $85,459

 

Market Highlights

• Vacancy has risen sharply, climbing more than 350 bps over the past year to 7.6%, driven by years of elevated construction and major tenant move-outs.
• Supply expansion remains heavy, with 1.7M SF delivered in the past 12 months and 1.0M SF under construction, following 4.6M SF of completions over the past three years (more than 2014–2019 combined).
• Demand softened, with –200,000 SF of absorption over the past year (vs. +450,000 SF prior year), while rent growth cooled to 3.0% annually amid limited preleasing and rising vacancies.

 

Sarasota Industrial Rents

Rents in Q3 2025 continued to slowdown as a surge of new supply and rising vacancy tempered landlord pricing power. Despite steady demand in past years, rent growth slowed to 3.7% year-over-year, down from the much stronger gains seen previously, as more than 1.7 million SF of recently delivered space, most of it arriving with limited preleasing, added competitive pressure. Average asking rents reached $13.31/SF, but the pace of growth has moderated consistently over recent quarters, reflecting a market adjusting to elevated vacancies and a construction pipeline that remains active.

 

Market Asking Rent Per SF

Source: CoStar Group, Inc.

 

Sarasota Industrial Vacancy

The vacancy rate continued to climb in Q3 2025, reaching 7.5% as the market absorbed the impact of sustained construction and notable tenant departures. Elevated supply, paired with –57K SF of quarterly absorption and larger move-outs has pushed vacancies up by more than 350 basis points over the past year. The market continues to adjust to an inventory expansion that has outpaced demand, contributing to a stalled performance and rising availability.

 

Vacancy Rate

Source: CoStar Group, Inc.

 

Sarasota Industrial Construction

Construction activity remained elevated, continuing a multiyear surge that has reshaped the market. More than 4.6 million SF has been completed over the past three years, roughly 5% of the metro’s total inventory and more than was delivered between 2014 and 2019 combined. In the most recent period, the market added 187K SF, while an additional 457K SF remains under construction, contributing to the 1.7 million SF delivered over the trailing 12 months. This sustained pipeline, much of it arriving with limited preleasing, has played a central role in pushing vacancies higher and softening fundamentals, as new supply continues to outpace tenant demand.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sarasota Industrial Sales

Sarasota’s industrial investment market remained active in Q3 2025, with sales volume reaching $346 million, contributing to a robust $391 million in trades over the past year—far above the pre-pandemic norm. Pricing continued to show resilience despite rising vacancies, with the average price per square foot at $140, reflecting solid investor confidence even as fundamentals softened. Cap rates have generally remained stable in this environment, supported by the market’s dominance of smaller, local buyers and limited institutional influence, which helps temper volatility in pricing and yields. Overall, Sarasota’s investment landscape continues to demonstrate strong liquidity and steady valuations, even amid elevated supply and cooling tenant demand.

 

Sales Volume & Market Sale Price Per SF

Source: CoStar Group, Inc.

 

By the Numbers

Source: CoStar Group, Inc.

• Sales Volume: $346M
• Price Per SF: $140
• Vacancy Rate: 7.5%
• Rent Growth: 3.7%
• Asking Rent Per SF: $13.31
• SF Under Construction: 457K
• SF Delivered: 187K
• SF Absorbed: (57K)