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Tampa Bay Industrial Market Report (Q2 2019)
Tampa Bay Industrial Market Report (Q2 2019)
Economic Growth Continues to Fuel Industrial Fundamentals and there is Still Gas Left
in the Tank Heading Into the Second Half of 2019
The industrial sector continues to dominate the headlines as the U.S. expansion moves past the 10-year
point. The outlook for the balance of 2019 remains bright, and strong economic fundamentals coupled with
rapid e-commerce growth and manufacturing expansion bode well for the overall industrial market. Last-
mile distribution and fulfillment facilities near city centers, a critical link in the e-commerce delivery chain,
are in increasingly short supply due to growing demand and strong leasing in recent years. That along with
aging existing industrial stock and rabid consumer demand has prompted the development of multi-story,
Ever-evolving changes
modern distribution and logistics centers in the nation’s primary markets, although that trend has not yet in the retail supply
appeared in Florida. Recent moves by Amazon, Walmart and other distributors to shorten shipping times chain continue to
to one day or less will further tighten available inventory, although Tampa Bay’s 4.8 million sf underway will drive strong demand
satisfy much of that immediate demand in the near term.
for well-located
Net absorption improved to 431,134 sf as of mid year following healthy leasing activity of mid-sized spaces industrial properties.
between 20,000 sf and 40,000 sf and the delivery of two buildings in 301 Business Center that were partly
preleased. Rental rates have also accelerated, growing by 8.27% over the trailing 12 months ending June 2019.
Vacancy Rate
Demographics & Economy
7.00%
5.95%
6.00%
The U.S. GDP growth rate is expected
5.00% 4.41% 4.47%
4.84%
to remain between the ideal 2% to 3%
4.00%
3.87%
range in 2019 and unemployment is
3.00% forecast to continue at
2.00%
The U.S. economy remains well the natural rate.
1.00%
entrenched in the expansion phase of
the business cycle
0.00%
2015 2016 2017 2018 2Q-19
2,000,000
1,500,000 Development
1,000,000
500,000
0
(500,000) 2015 2016 2017 2018 YTD-19
96% of all new space underway is along the
(1,000,000) pivotal I-4 Corridor, offering accessibility to
Bulk Distribution Flex Manufacturing Warehouse/Distribution
20 million people
Average Asking Rent Rate ($/SF/NNN)
within a 5-hour drive time
4.8 million
square feet currently under
$14.00
$13.00
construction
$12.00 $10.78
$11.00 Amazon planning a $100 MM
582,900 sf
$9.24 $9.27
air cargo hub at Lakeland
$10.00
$9.00
$7.30
$8.00
$7.00
$5.67 $6.16 $5.45
$5.15
$6.62 $6.95 $6.47
Linder International Airport on
$6.00
$5.00 a 50-year ground lease that average size of the new bulk
$4.00
will employ 800+ distribution buildings currently
underway in Lakeland
Market Influencers
1,000,000
The Amazon Effect
0 continues to have a
2015 2016 2017 2018 2Q-19
significant effect on the Global e-commerce sales grew by 18% in
SF Delivered Under Construction
industrial market 2018, with the U.S. and China dominating
online retailing
Ze p hy rh i l l s
PINELLAS Land O' 75
We s l ey
Ch a p e l
SUBMARKETS Ho l i d ay
L a ke s
Cr ys t a l POLK
PASCO COUNTY Tr i n i t y Odessa Springs
NORTH PINELLAS COUNTY
Ta r p o n PINELLAS COUNTY Ch eva l HILLSBOROUGH COUNTY
Keys to n e 597
MID PINELLAS-GATEWAY Springs
41
ALT
19 19 Lu t z 275
SOUTH PINELLAS 611
41
Pa l m East No r t h d a l e 39
H a rb o r L a ke 581
L a ke
Magdalene
589
Ci t ru s BUS
Pa rk 41 U n i ve r s i t y
752 Ca r ro l l wo o d 582A
We s tc h a s e USF
597 582
Te m p l e
Dunedin Te r ra ce Th o n o to s a s s a 4
Oldsmar Eg y p t 580
580 580 L a ke 41 75 92
583 4 92
Tow n ' N ' - Le to
L akeland
S a fe t y Co u nt r y E a s t L a ke -
ALT 1 19 H a rb o r 275 O r i e nt Pa rk
19 600 92 S e ff n e r 574 P l a nt
Ta m p a
Mango Ci t y
Int’l
Downtown 574 D ove r
Cl e a r wate r
Ta m p a
Airport
Tampa 301
60
699
611 B ra n d o n
60 Port of Tampa 618
Belleair Belleair 60
Beach S t Pe te - C l e a r wate r BUS Va l r i co
Int’l Airport 275 Channelside 41
686
L a rg o Fe at h e r Pa l m R i ve r -
Sound Cl a i r M e l
Indian POLK
Rocks 688 POLK COUNTY
39
Pro g re s s Blooming- 98 CITY
Beach 688 ALT
19 92 41 Vi l l a g e dale
296 Pi n e l l a s 33
Indian Pa rk
Sh o re s B a rd m o o r R i ve r v i ew
Macdill
AFB
694 Fi s h H aw k 4
R e d i n g to n G i b s o nto n
Seminole
Sh o re s Le a l m a n 570
75
R e d i n g to n B ay 33 LAKELAND
ALT
Beach 699 Pi n e s 19 19 275
M a d e i ra
S a i nt
Beach 375 Pe te r s b u rg Ap o l l o 92
Tre a s u re 175 Beach 301 92
Is l a n d Balm
570
South Gulfport S u n Ci t y 37
570
Pa s a d e n a Ce nte r
Ruskin 98
682
St. Pe te 674
Beach
75
HILLSBOROUGH SUBMARKETS
41
Ti e r ra NW TAMPA E HILLSBOROUGH - PLANT CITY
Ve rd e Wi m a u m a
Contact Information
Ken Lane, Principal and Managing Director Clay Witherspoon, Principal and Managing Director Tim Callahan, Principal
1715 N Westshore Blvd, Suite 450 1715 N Westshore Blvd, Suite 450 1715 N Westshore Blvd, Suite 450
Tampa, FL 33607 Tampa, FL 33607 Tampa, FL 33607
813.444.0623 813.444.0626 813.280.8372
ken.lane@avisonyoung.com clay.witherspoon@avisonyoung.com tim.callahan@avisonyoung.com
Trey Carswell, Principal Lisa Ross, Principal Allen Henderson, Vice President
1715 N Westshore Blvd, Suite 450 1715 N Westshore Blvd, Suite 450 1715 N Westshore Blvd, Suite 450
Tampa, FL 33607 Tampa, FL 33607 Tampa, FL 33607
813.444.0627 813.314.7798 813.444.5330
trey.carswell@avisonyoung.com lisa.ross@avisonyoung.com allen.henderson@avisonyoung.com