TAMPA, FL—Talk of the Panama Canal and dredging of the Miami River have lit up the industrial market in the Magic City. But Miami is hardly leading the Florida—or the national—charge on the industrial occupancy front.

Yes, industrial real estate is recovering. Cushman & Wakefield reports robust absorption, declining vacancies and rising rental rates in the first quarter of 2014. Supply is tightening, which CushWake figures may have contributed to a slowdown in leasing velocity through January, February, and March, but industrial construction pipeline has ramped up to meet strengthening demand.

“First quarter performance continued the notable progress industrial real estate experienced in 2013,” says CushWake's John Morris, leader of Industrial Services for the Americas. “Domestic manufacturing continues to gain traction, driving increased production and shipments, and electronic fulfillment continued to expand. As a result, the economic environment for our sector is the best we have seen in many years.”