Top States with the Lowest Industrial Vacancy Rates
Why Industrial Vacancy Rates Matter
Let’s cut through the jargon—industrial vacancy rate is just a fancy way of saying how much warehouse space is sitting empty. The lower the rate, the tighter the market. And in tight markets? You’re going to need sharp elbows andsharper paperwork.
Top U.S. States with the Lowest Vacancy Rates in 2025
So who’s leading the pack right now? Based on the latest Q1 2025 industrial reports, here are the states where warehouse space is getting snapped up the fastest.1. Utah – 2.3% Vacancy
Salt Lake City’s industrial market is on fire. Proximity to both the West Coast and central states makesUtah a logistics sweet spot. Combine that with a growing tech scene, and even smaller warehouse bays are getting gobbled up.
2. Florida – 2.6% Vacancy
The I-4 corridor—especially betweenTampa and
Orlando—is booming. Demand’s driven by e-commerce, last-mile logistics, and a steady population surge. Good luck finding anything turnkey.
3. Texas – 2.8% Vacancy
Wait, isn’tTexas building warehouses like crazy? Yep. But demand still outpaces supply in places like
Dallas,
Houston, and
San Antonio. Major players like Amazon, Tesla, and H-E-B are soaking up space.
4. California – 3.1% Vacancy
From the Inland Empire toFremont, industrial space is ultra scarce. Sure, prices are brutal, but for West Coast fulfillment, there's no avoiding
California. Even Class B warehouses are seeing bidding wars.
5. South Carolina – 3.4% Vacancy
Thanks to Port of Charleston and major automotive suppliers,South Carolina is now one of the tightest industrial markets in the Southeast. Foreign direct investment is also ramping up, making sub-50K sq. ft. spaces especially competitive.
What Low Vacancy Means for Tenants
Let’s not sugarcoat it—leasing in a low-vacancy state can be brutal.- Higher rents: Landlords know they’ve got leverage. Don't be surprised by annual escalations north of 4%.
- Fewer concessions: TI allowances, free rent, and flexible terms? Not as common in tight markets.
- Faster deal cycles: That space you toured Tuesday? It’s gone by Friday. Maybe Wednesday.
- More aggressive competition: 3PLs and consolidators are locking in long-term leases, even for spaces they don’t need yet.
Emerging Tight Markets You Shouldn’t Ignore
Not every low-vacancy market is a household name—yet. These under-the-radar areas are getting tighter every quarter:Reno, Nevada
Reno has quietly become a logistics magnet. Tesla’s Gigafactory kicked things off, but now e-commerce players and data centers are moving in fast. Sub-3% vacancy isn’t uncommon.Columbus, Ohio
Massive industrial builds in centralOhio have been leasing before completion. Intel’s chip facility nearby has fueled demand for suppliers and support services.
Savannah, Georgia
Thanks to its deepwater port and direct rail to the Midwest, Savannah is no longer a secret. Expect sub-4% rates and major growth in 2025.Boise, Idaho
It’s small—but mighty. Boise’s industrial market is red-hot, especially for light manufacturing and last-mile hubs.Leasing Tips for Competitive States
So, you're hunting for space in one of these tight markets. What now? Here are a few real-world tips to help you survive (and thrive):1. Line Up Your Docs Before You Tour
Landlords aren’t waiting. Have your financials, insurance certs, and entity paperwork ready to go. If you haven’t yet, check out our full guide: What Documents Do You Need to Lease a Warehouse?2. Use a Local Broker Who’s Deep in the Market
Don’t bring a residential agent to an industrial fight. You need someone with warehouse credibility—and relationships with landlords.3. Be Willing to Make Tradeoffs
Need 20,000 sq. ft. with dock-high loading *and* fenced yard space *and* zoning for distribution? You might be waiting a while. Prioritize the must-haves.4. Consider Pre-Leasing or Off-Market Options
Some of the best deals never hit LoopNet. Ask brokers about upcoming availabilities or "shadow inventory" not yet public.5. Be Decisive
Tour Tuesday. Decide Wednesday. LOI by Thursday. If you hesitate, someone else will ink the deal first. It’s that competitive in markets likeAustin, Texas or
Salt Lake City, Utah.
Bonus:
If you're flexible on geography, consider searching for space just outside the tightest metros—say,Waco instead of
Dallas, or
Lakeland instead of
Orlando.