Florida is booming, but if you think all the action is in places like Miami, Orlando, or Tampa, you might be missing the mark. The real goldmine? Secondary markets like Lakeland.
As someone deeply invested in Florida real estate, I’ve witnessed firsthand how Lakeland is quietly becoming a prime investment spot. And trust me, there’s no better time than now to jump in. Let me break down why Lakeland is outpacing its larger neighbors and how you can get ahead of the curve in 2025.
Why Lakeland?
Lakeland, sitting comfortably between Tampa and Orlando, is more than just a middle point along the I-4 Corridor. It’s a key logistics and distribution hub that has quietly become a magnet for new residents and businesses. Here’s why:
- Strategic Location – The I-4 Corridor connects two of Florida’s largest metro areas, making Lakeland a perfect location for businesses and residents seeking affordability without sacrificing access to major economic centers.
- Growing Population – Lakeland’s population is growing at about 3% annually, outpacing the national average. With Tampa and Orlando becoming increasingly unaffordable, Lakeland offers a lower cost of living that attracts workforce families, retirees, and snowbirds.
- Diverse Economy – From logistics and healthcare to education and retail, Lakeland’s economic landscape is diverse. Major employers like Publix, Amazon, and Lakeland Regional Health provide stability and job growth, making it an ideal market for long-term investments.
The I-4 Corridor Advantage
The I-4 Corridor is more than just a highway. It’s Florida’s economic artery, and Lakeland sits right in the heart of it. This strategic positioning benefits Lakeland in several ways:
- Logistics & Distribution – Amazon and Publix have massive distribution hubs in Lakeland, boosting local employment and economic activity.
- Potential SunRail Expansion – There’s been talk for years about extending the SunRail high-speed train from Orlando to Tampa, with a stop in Lakeland. If that happens, expect even more growth and skyrocketing property values.
Rent Growth and Undersupply
One of the most compelling reasons to invest in Lakeland now is the rent growth and upcoming undersupply.
- Rent Growth – Even during the oversupply period in 2023-2024, Lakeland saw 5-6% rent increases, compared to 4-5% in Tampa and St. Pete. With fewer new developments on the horizon, rent growth is expected to average 6-7% annually through 2027.
- Housing Undersupply – New construction permits in Florida dropped by 30% in late 2024 due to rising interest rates. By 2025-2026, Lakeland and similar markets will face significant housing shortages, pushing rents even higher.
Polk County alone is projected to have a housing gap of over 10,000 units by 2026.
Reality Check for New Investors
I’m all about keeping it real with you – investing in secondary markets like Lakeland is exciting, but it’s not without its challenges. Here are a few things to keep in mind if you’re new to the game:
- Cash Flow Isn’t Always Immediate – Even if rents are rising, it can take time to stabilize a property, especially if there are deferred maintenance issues or tenant turnover. Don’t expect overnight returns.
- Hidden Costs Add Up – Insurance, taxes, and labor costs may be cheaper in Lakeland compared to bigger metros, but they’re still rising. Budget conservatively and have reserves for unexpected repairs or vacancies.
- Competition Exists – Just because Lakeland is a secondary market doesn’t mean you’re the only investor looking to scoop up deals. Be ready to act fast but stay disciplined on your numbers.
Why Now is the Time to Buy
Cap rates have decompressed over the past two years, climbing by 150 basis points or more. This means property valuations are down – but that’s not a reason to sit out. In fact, it’s the opposite.
Consider this:
- A property with $500,000 NOI at a 5% cap rate was valued at $10 million two years ago.
- With today’s 6.5% cap rate, that same NOI values the property at just $7.7 million.
That’s a $2.3 million discount for the same performance. If you buy now while others sit on the sidelines, you’re positioning yourself to reap the rewards when valuations bounce back.
How to Win in Lakeland Real Estate
If you’re looking to invest in Lakeland or similar secondary markets, here are a few key tips:
- Focus on Cash Flow – Ensure the property cash flows from day one. Don’t bank on appreciation alone.
- Secure Fixed-Rate Debt – Rising interest rates can erode profits. Lock in fixed-rate debt for the next few years to weather any market fluctuations.
- Underwrite Conservatively – Project modest rent growth (2-3%) and assume rising expenses to build in a buffer. If the market outperforms, that’s icing on the cake.
The Takeaway
Lakeland is on the rise, and the next few years could define the future for investors who get in early. If you’re ready to take advantage of Florida’s hidden boom but aren’t sure where to start, let’s connect. I’ve been in the game for five years, and while I’m always learning, I know how to spot opportunities and make them work.
Don’t wait for the perfect moment – now is the time to invest.
Want to learn more about investing in Lakeland? Reach out, and let’s build wealth together.
