Tampa's Industrial Vacancy Level Rises to 7.1%

TAMPA, FL-- A challenging economy continued to weigh heavily on Tampa’s industrial market during the second quarter of 2008, according to a new market analysis by Randy Smith (top right photo), Director of Research, GVA Advantis, Tampa.

.Year-to-date, both direct and sublease space have expanded, pushing Tampa’s overall vacancy rate to 7.1 percent—up from 5.0 percent at this year’s start.
New construction boosted Tampa’s industrial inventory by just over 800,000 square feet in the first half, with 60 percent of this space committed on delivery.

It now appears that the climb of Tampa’s industrial rents peaked in the final quarter of 2007 at $7.66 per square foot. The average asking rate for industrial space in Tampa has since receded to the $6.66 mark this period.
However, the longer term prospects for Tampa’s industrial market show definite signs for optimism.

According to projections by Global Insight, Florida’s economy will make a turnabout in the second half of this year—real gross domestic product in the state is forecast to grow by 1.2 percent in 2008 and accelerate to double that pace for 2009.

This upcoming improvement in Florida’s economic production should have a positive impact on local industrial demand going into next year.

According to a mid-year 2008 review by Real Capital Analytics (RCA), the sale prices of Tampa’s industrial properties are stacking up well against other markets in the Southeast region.

Based on RCA’s regional average of $101 per square foot for flex properties, Tampa’s flex sales recorded a 25 percent premium so far this year. For warehouse / distribution properties, Tampa’s pricing registered 90 percent higher than RCA’s average of $44 per square foot for the Southeast region.

For a detailed copy of the report, please contact Randy Smith, Director of Research, Advantis Real Estate Services Company, 3000 Bayport Drive, Suite 100, Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
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