TAMPA, FL--In his fourth quarter Industrial Market Report, Randy Smith ( top right photo), regional director of research, GVA Advantis, Tampa, says the quarter marked a significant downturn in the economy as the nation’s gross domestic product nose-dived by 6.2 percent.
Rent performance weakened in response to the increased availability of Tampa’s industrial space.
It’s clear that industrial property owners will face a challenging year in 2009.
Randy Smith, MBA, Regional Director of Research, Advantis Real Estate Services Co.,
3000 Bayport Drive, Suite 100. Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
www.gvaadvantis.com
This collapse, along with sluggish consumer spending and declining industrial production throughout 2008, combined to stifle the demand for industrial space.
Vacancy in Tampa’s industrial market grew steadily in 2008 — the direct vacancy rate rose by 300 basis points to end the year at 7.3 percent.
Rent performance weakened in response to the increased availability of Tampa’s industrial space. The average asking rental rate, which peaked at year-end 2007, declined by 15.9 percent during 2008 to end the year at $6.44 per square foot.
Tampa’s industrial sales maintained some momentum in the final quarter of 2008, totaling $48 million in transactions closed.
This period also produced Tampa’s largest industrial deal of 2008 — a portfolio of 15 flex buildings located in east Tampa’s Breckenridge Park which traded for $28.4 million. The buyer, Miami-based Adler Group, Inc., acquired the 332,582-square foot complex in October using a $100-million fund seeded by a major European investor.
Tampa’s industrial sales maintained some momentum in the final quarter of 2008, totaling $48 million in transactions closed.
This period also produced Tampa’s largest industrial deal of 2008 — a portfolio of 15 flex buildings located in east Tampa’s Breckenridge Park which traded for $28.4 million. The buyer, Miami-based Adler Group, Inc., acquired the 332,582-square foot complex in October using a $100-million fund seeded by a major European investor.
It’s clear that industrial property owners will face a challenging year in 2009. Tampa’s linkage to residential housing was a primary cause of its downturn in local industrial activity and continuation of this housing turmoil in 2009 will contribute to increased vacancies.
New industrial construction is gearing down in Tampa, with about 300,000 square feet of speculative space to be completed in the first quarter of 2009.
The tightening credit markets will make financing new industrial projects more difficult and be another strong constraint on additional supply.
For a complete copy of the news release and fourth quarter 2008 results, please contact:
Randy Smith, MBA, Regional Director of Research, Advantis Real Estate Services Co.,3000 Bayport Drive, Suite 100. Tampa, FL 33607. Tel 813.342.4725. Fax 813.372.4004. E-mail rsmith@gvaadvantis.com
www.gvaadvantis.com
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