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 and sharper 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 makes Utah 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 between Tampa 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’t Texas 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 to Fremont, 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 central Ohio 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 like Austin, 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.