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Market Report

Greater Tampa Bay Industrial

Second Half 2019

Asking Rents Climb While a Surge in Speculative Construction Temporarily Weighs on Vacancy

Growing need for goods and services supports industrial demand; multimodal transit options draw users. Robust employment, population and tourism gains are generating consumer demand throughout Greater Tampa Bay, boosting the industrial sector. Meanwhile, a network of road, rail, port and air systems provides access to markets around the world, attracting tenants. This network will soon be enhanced as Amazon is building the largest air cargo hub in the Southeast at Lakeland Linder International Airport. Strong demand for space dropped vacancy to the cyclical low in the final quarter of 2018, sparking a wave of speculative construction, especially along the I-4 corridor in East Hillsborough and Polk County. These deliveries will push vacancy higher in 2019. Leasing activity has been assisted by retailers seeking large warehouse and distribution space within an easy distance to customers. Ikea and Walmart are among the firms taking sizable blocks of space in 2019. In addition, Home Depot is planning a distribution center in Plant City and Conn’s HomePlus is opening a logistics center in Lakeland during 2020 as it expands into Florida.

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