This post originally appeared on tBL member Pam Pester's blog The Tenant Rep Blog and is republished with permission. Find out how to syndicate your content with theBrokerList.
Vacancy in Tampa Bay’s industrial market decreased for the fifth consecutive quarter to 8.6% with total vacancy beginning to approach pre-recession levels. Overall economic expansion and strong regional job growth played a major role in a healthy Tampa Bay industrial market. Construction, manufacturing and packaging firms all experienced continued expansion as a result of the improving housing market and the recent opening of two Amazon distribution centers in the area.
There are currently 12 tenants in the market seeking space larger than 100,000 square feet with limited options available. This is prompting developers to consider speculative developments. There are rumors that that an industrial development boasting three million square feet along the I 4 corridor near Davenport will be announced shortly.
There was a noticeable uptick in small user activity as well, which was reflective of the strengthening local economy, increased bank lending for small businesses, and tenant confidence. Buildings smaller than 20,000 square feet were in high demand both for lease and sale.There are currently 12 tenants in the market seeking space larger than 100,000 square feet with limited options available. Click To Tweet
Tampa Bay’s economy began 2015 on a strong note gaining 34,500 jobs over the year. As a result of these job gains, the overall unemployment rate for the Tampa Bay metro area dropped to 5.1% in March 2015, down one percentage point from a year ago and 0.4 percentage points lower than the State’s rate of 5.5%.
Tampa Bay leads the south in job creation in a big way, according to a recent report from online job posting service ZipRecruiter. The company’s Hiring Demand Index is based on relative monthly job growth percentage. Tampa Bay scored a +140, double that of second-place Dallas-Fort Worth-Arlington. Jacksonville is sixth on the list and Orlando is tenth.Tampa Bay’s economy began 2015 on a strong note gaining 34,500 jobs over the year. Click To Tweet
Overall, the average asking rental rates on industrial leases in Tampa Bay increased to $4.33 per square foot from $4.28 the prior quarter. The average asking rental rate for flex space also rose, to $8.03 up from $7.62 per square foot.
Market concessions remained consistent with the previous quarter, with many landlords offering less than one month of free rent per year of the lease (outside of the lease term). In addition, tenant improvement allowances continued to decline.