While core industrial markets continue to thrive, Colliers International’s latest research report—10 Emerging U.S. Industrial Markets to Watch in 2017—explores the markets positioned to experience the most robust increases in demand from occupiers and owners. Learn more about one of these markets: Tampa Bay.
“Tampa Bay is the demographic center of the state of Florida. The region known as the Interstate 4 corridor is widely diverse, which has positive implications for distributors and manufacturers. They say that if you can sell it or source it in Tampa Bay, you can send it by plane, train or truck anywhere on the planet. As a result, Tampa Bay is increasingly becoming the point of departure or arrival for goods and materials.” — Ryan Kratz, President | Tampa Bay
An exploding population continues to fuel the Tampa Bay market. E-commerce is one of the key drivers, as Amazon and Walmart have both opened multi-million-square-foot distribution centers.
In 2014, CSX opened the 318-acre Central Florida Intermodal Logistics Center (CFILC) in Winter Haven, FL. The CFILC terminal can process 300,000 containers a year and the surrounding 930 acres can potentially be developed into 7.9 million square feet of distribution and light industrial facilities.
Overall vacancy rates declined significantly in 2016 to 6.3%—1 percentage point lower than at year-end 2015. Vacancies decreased despite more than 4.4 million square feet of new construction in 2016.
The strong demand in the Tampa Bay market is showcased in net absorption, which finished Q3 2016 at 4.6 million square feet YTD, the 10th-highest level in the country. At the same point in 2015, Tampa Bay ranked 28th for overall net absorption.
With a large amount of land available for development, the Interstate 4 corridor is expected to see the largest increase in activity in the Tampa Bay market in 2017.
Asking rates were stable in 2016, finishing the year at $5.06 per square foot per year NNN. With vacancies continuing to decline and a large amount of class A construction completing in 2017, look for asking rental rate growth to accelerate in the coming year.
To learn more, explore the 10 Emerging U.S. Industrial Markets to Watch in 2017.