What Tampa Industrial Looks Like for Tenants

TAMPA—What does the Greater Tampa Bay industrial look like for tenants? For starters, vacancy has decreased to 7.6% in Tampa and Saint Petersberg, according to CoStar.

The firm reports the vacancy rate was down over the previous quarter, with net absorption totaling positive 1,389,309 square feet in the first quarter. That compares to positive 1.029 million square feet in the fourth quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 342,407 square feet.

CoStar points to several moving into large blocks of space in 2015 so far. The list includes: Uni-Select moving into 115,147 square feet at Hopewell Industrial Center; Barnett moving into 90,000 square feet at Gateway Commerce Center; and Allside moving into 27,000 square feet at Silo Bend V.

GlobeSt.com caught up with Caleb Lewis of Cresa to get his take on the industrial market. You can still read part one of this exclusive interview:

GlobeSt.com: How would you describe the state of the industrial market?

Lewis: On the industrial front, 2014 and early 2015 have seen strong leasing activity. In fact, vacancy rates are at their lowest levels in seven years. Developers are starting to look at building spec again, particularly in East Tampa close to the Interstate 75 Corridor. 

Lakeland continues to perform quite well as it is well located within a 100 mile radius of half of Florida's population. Class A vacancies are very low in Hillsborough and Pinellas, however there are still a number of options available in the class B and C markets. 

Overall, tenants continue to have some negotiating leverage, but especially in class A, you should start to see landlord's beginning to achieve equilibrium in negotiating position in 2015. Tampa Bay continues to see very affordable industrial rental rates compared to other markets in Florida, especially South Florida.