TAMPA, FL, June 12, 2009--Randy Smith (top right photo), MBA, Regional Director of Research, Advantis Real Estate Services Company, reports the bumpy ride for Tampa’s industrial market got a little rougher in the first quarter of 2009.The pronounced reduction in consumer spending and business activity cut sharply into industrial demand.
By the end of March, Tampa’s direct vacancy rate posted a 70-basis point rise over the year’s start and registered 8.2 percent.
Tampa’s industrial landlords reacted swiftly to the slowdown and slashed market rents in the first quarter — the average asking rental rate fell 10 percent by the end of the period and closed at $5.78 per square foot.
A handful of new deliveries were added to start the year, but the production of new speculative industrial product is closing down fast. The economic downturn had a domino effect on demand for industrial space and Tampa has felt a significant impact so far in 2009.
The influence of the housing bubble and the slowdown in consumer demand hit Florida particularly hard and with this came a sharp pull-back in demand, particularly for warehouse and distribution space.
In 2009 Tampa’s first quarter industrial leasing activity was only one-third of the same period last year and less than one-half of the first quarter 2007.The traditional drivers of industrial demand remain weak and the potential positive impact of government stimulus efforts is not likely to render much assistance until into next year.
Weaker fundamentals are expected to restrain many investors who will be increasing selective this year. Declining market rents and surplus industrial vacancies will keep upward pressure on cap rates.
User dispositions are likely to increase in the market as companies liquidate their real estate holdings to raise cash or consolidate their operations.
For a complete copy of the company's news release and the report, please contact:
Randy Smith, MBA, Regional Director of Research, Advantis Real Estate Services Company,3000 Bayport Drive, Suite 100, Tampa, FL 33607.
Tel 813.342.4725, Fax 813.372.4004, rsmith@gvaadvantis.com
Randy Smith, MBA, Regional Director of Research, Advantis Real Estate Services Company,3000 Bayport Drive, Suite 100, Tampa, FL 33607.
Tel 813.342.4725, Fax 813.372.4004, rsmith@gvaadvantis.com
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