NKF Brokers Two Industrial Deals in a Market That Finally May be Slowing
Class A properties selling for low to mid-$90s per square foot are particularly in demand in a market where demand has outpaced supply for four years.
TAMPA, FL–Amid signs of slowing demand and predicted slight vacancy increases, Newmark Knight Frank announced the completion of one sale and a significant lease for two industrial buildings in the Tampa Bay market. They are:
Hunt-Wilde Corp. sold its 98,000-square-foot warehouse to Wholesalers Property Company for $3.5 million. Located at 2835 Overpass Rd. in East Tampa, the industrial building was originally constructed as a mobile home manufacturing facility, and later converted into an injection molding facility, making parts for recreational and commercial products and industrial manufacturers. Winsupply, a supplier of residential and commercial construction materials and a subsidiary of Wholesalers Property Co., will occupy 100 percent of the building. NKF Senior Managing Director Rick Narkiewicz and co-broker John Jenkins, president of Jenkins Property Advisors, represented the owner and seller.
In the second deal, Narkiewicz represented the landlord, Duke Realty. He negotiated a 242,932-square-foot lease with Solar City. Also known as The LeverEdge. Solar City will occupy approximately 55 percent of the 442,874-square-foot industrial building. Building 200 is a part of Tampa Regional Industrial Park, located in southeast Hillsborough County.
According to NKF Research, Tampa’s industrial market has now seen demand outpace supply for more than four years, with approximately 386,000 square feet of positive net absorption taking place during the second quarter of 2018. Industrial leasing activity in the Tampa market increased significantly compared with that of previous quarters, as 198 transactions totaling over 2.5 million square feet were completed during the second quarter.
Best Buy Distribution Center Big User for New Space
Nine warehouse buildings touting approximately 2.6 million square feet are projected to come online over the next year in the metro Tampa Bay area. Just under half is spoken for, and 650,800 million square feet of that can be attributed to Best Buy’s new distribution facility underway in Polk County, which is expected to be completed in the third quarter.
NKF’s most recent report on the overall Central Florida Industrial Market reported another healthy quarter. “Growth held through midyear with signals of demand slowing,” the report headlined.
“With significant new warehouse inventory slated to deliver in the Tampa market, we expect slight increases in vacancy; however, we anticipate demand for industrial space will continue to outpace supply over the next 12 months,” said Narkiewicz. “Industrial continues to be a highly sought-after product type, especially Class A properties, which sell for around the low to mid-$90s per square foot when they come on the market.”