Tampa Industrial Deals Slowed but Vacancy Levels Stabilize

TAMPA, FL--Tampa’s deal velocity slowed rather abruptly in the second half of 2007, yet healthy property level fundamentals will benefit its industrial market heading into 2008, according to the most recent market overview prepared by Randy Smith,(photo at left) director of research in the Tampa office of GVA Advantis.

Net absorption of 1.8 million square feet for the year kept Tampa’s vacancy levels stabilized even with 1.5 million square feet of new deliveries for 2007. The direct vacancy rate remained below the five-percent mark for the seventh straight quarter, registering 4.4 percent at year-end. Rents nudged higher in the fourth quarter pushing the average asking rate a substantial 11.2 percent for the year.

Despite some storm clouds on the horizon, Tampa’s industrial market closed out a strong three-year run of activity which amassed 5.4 million square feet of net absorption through the end of 2007. During this cycle, starting in 2005, new industrial development increased at a moderate pace, adding 3.7 million square feet of new deliveries. This restraint in new supply allowed Tampa’s industrial inventory to achieve historic lows in vacancy which were maintained during 2007.

Portfolio activity provided a healthy boost to Tampa’s industrial sales in 2007. Despite fewer transactions than in 2006, Tampa’s annual volume increased to $216.5 million in 2007, a hefty 70 percent increase over the previous year. Based upon product type, the sales were weighted slightly toward the distribution sector, which captured 55 percent of the total dollar volume in 2007.

For a more detailed industrial market 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
www.gvaadvantis.com