Naples Industrial Market Overview:
Strong Demand, Rising Rents, and Promising Outlook for 2025
Naples, FL. The Naples industrial market is among the smallest on Florida’s West Coast, encompassing approximately 14.5 million SF. While the industrial vacancy rate remains low, it has increased over the past year. As of the first quarter of 2025, Naples boasts one of the lowest industrial vacancy rates in the state, at just 2.3%. Despite this, the market has seen limited movement over the past year, with modest leasing activity and absorption. Outside of Uline’s completion and occupancy of its 940,000 SF facility, there has been little development in Naples’ industrial sector over the last two years. Like many regions in Florida, the market saw a notable surge in activity in 2021, driven by in-migration that spurred housing growth and, consequently, increased industrial demand.
New construction in Naples is highly constrained. It has been over a year since the completion of a new project, and currently, less than 20,000 SF is under development. The most notable project underway is a 17,400 SF facility along Tollhouse Drive. This development primarily features small-bay spaces ranging from 2,500 to 3,500 SF, with an asking rate of $24.00/SF, significantly higher than the market average of $17.60/SF.
Packing supply company Uline chose Naples for its new 940,000 SF warehouse, completed in the second quarter of 2023. It is one of only a handful of buildings larger than 900,000 SF in Southwest Florida and the largest industrial building in the Naples market. A project of this scale is rare in both Naples and Southwest Florida, exceeding the total square footage of the previous decade’s worth of market completions.
Naples is one of the most expensive industrial markets in Florida, with an average asking rent of $17.60/SF. With limited availability—less than 350,000 SF—landlords have been able to increase rates by 4.6% compared to this time last year. While rent growth has slowed, reflecting trends seen across the country, it remains well above previous levels, having peaked at over 10% in mid-2022. This moderation in growth is expected to continue, with rents likely to rise by about 4.5% by mid-2025. Despite this slowdown, Naples is projected to continue outpacing the national average through at least the end of 2025.
Sales
Industrial investment activity accelerated in the first quarter of 2024, with over $50 million in total sales volume. In fact, Q1 2024 was one of the best quarters in the past decade for sales volume and only the second time the market has surpassed $50 million. Activity levels returned to more typical levels in the second quarter and increased further in the third quarter. Over the past year, the market recorded $101 million in total sales volume. Pricing has remained relatively stable over the past several years, averaging around $179/SF as of the first quarter of 2025. Sales in the market are typically smaller, with an average sale price of just under $2.5 million. This market is not reliant on institutional investors, so future investment volumes are expected to align with current levels. In fact, the largest trade of the year to date was made by a private investor. In January, Illinois-based Venture One Real Estate purchased two industrial buildings along Enterprise Avenue for $17 million ($203/SF). A more typical transaction was Naples Rental Group’s $1.5 million purchase ($150/SF) of a 10,000-SF warehouse.
Economy
Naples is the southernmost market in the Southwest Florida region and one of the most affluent areas in the state, with a median household income of $84,000, roughly 10% higher than the national median. The area has long been known as a destination for retirees, which has contributed to its median age of 54, significantly higher than Florida’s median age of 43. Like many parts of Florida, population growth has been a key driver of commercial real estate expansion in recent years. However, Naples’ relative affordability compared to other areas in the state has kept population growth more subdued. Population growth peaked between 2021 and 2022 when the market added approximately 10,300 new residents. This dropped to 6,800 new residents between 2022 and 2023, and this trend is expected to continue when the Census Bureau releases more recent figures in early 2025. Naples is one of the most expensive areas in Florida to purchase a home, with a median sale price around $640,000—nearly $100,000 higher than Miami-Dade County. It is also one of the few multifamily markets in Florida with a monthly average rent exceeding $2,200. Healthcare is a major driver of Naples’ economy, representing the largest share of the market’s employment base. Many of the area’s hospital systems are its largest employers, and Arthrex, a medical device manufacturing company, has a significant presence, employing nearly 4,000 people.
Transforming the Industrial Flex Space Landscape in Southwest Florida
Bartley Realty LLLP strategically expands its footprint by offering Industrial Flex Spaces in key locations throughout Southwest Florida. With Linekin Development in its portfolio, the company unveils innovative flex spaces tailored to meet the needs of both startups and established businesses.
Tollhouse Industrial Suites
Near exit 101 of I-75
Unparalleled versatility and functionality with this exceptional 1,500 square foot flex space unit, now available for sale at Tollhouse Industrial Suites. Priced at $549,900, this unit offers the perfect blend of convenience, quality, and value.
Beck Business Park
Corner of Collier and Beck BLVD
Beck Business Park, the premier destination for modern flex warehouses in Naples, FL. this park offers unparalleled accessibility and convenience. Units to Fit Your Needs Choose from a variety of flex warehouse sizes, ranging from 1,530 square feet to 73,440 square feet. Each unit is designed with modern features for a productive and secure work environment.
Naples Luxury Motor Suites
Just off of exit 101 on I75
Construction has started – Naples Luxury Motor Suites: The Ultimate Auto Haven Indulge in Opulence and Security Discover the pinnacle of automotive storage with Naples Luxury Motor Suites. These luxurious, climate-controlled units offer the perfect sanctuary for your prized possessions. Located just 10 miles east of the Gulf Coast, these suites provide unmatched security and convenience.
Shirley Street HUB
Center Naples just off of Pine Ridge Rd in the industrial park
Premier Class A Flex Space in Naples, FL Discover your ideal business space at Shirley Street HUB, the latest Class A industrial flex development by Bartley Realty in Naples, FL. Offering both purchase and lease options, Shirley Street HUB is designed for modern business needs, combining convenience, durability, and style.
3558 Plover AVE, Naples, FL
Secure, Stable Income: Fully Leased Flex Space in Naples, FL” Invest with Confidence: Fully Leased Flex Space in Thriving Naples This exceptional investment opportunity presents a fully leased, well-maintained industrial flex space building in Naples, FL. Built in 2021 with durable concrete block construction, this property offers a secure and stable income stream for discerning investors.
3933 Tollhouse DR, Naples, FL
Just off of Collier Blvd and Davis Blvd close to I 75
Prime Investment Opportunity: ±33,242 SF Flex Space in Naples, FL – Ideal for 1031 Exchange Fully Leased, Secure Income Stream This ±33,242 square foot flex space in Naples, FL offers a prime investment opportunity for buyers looking to execute a 1031 tax exchange.