// INDUSTRIAL MARKET OVERVIEW
// U.S. OVERALL INDUSTRIAL CLOCK | Q1 2016
// INDUSTRIAL MARKET OVERVIEW
• Market experts are excited to see where the Tampa Bay industrial market is heading,
particularly within the East Tampa and Polk County submarkets that are experiencing
rapid growth. From 2010-2013 just 1.0 million square feet of inventory was delivered
across Tampa Bay, and during the past 24 months an additional 4.4 million square
feet have been delivered. Multiple large new to market users have entered the
market, with some groups deciding on build to suit options. Multiple companies have
found such success in the Tampa Bay market recently and have expanded their local
footprint or are in the process of finding new space, which is proving difficult in an
increasingly tightening market.
• Total vacancy is currently at an eight-year low, and combined with steadily increasing
rental rates, the Tampa Bay industrial market is in a strong position to maintain and
grow. Highlighting the strengthening market conditions was the 2.9 million square
feet absorbed and about 950,000 square feet of deliveries in 2015, and there is
currently 4.15 million square feet under construction set to deliver in the next 12 to
24 months.
• A major driving force behind all of the expansion and growth in Tampa (and Central
Florida as a whole) is e-commerce. The continuing trend of internet purchasing is
forcing companies to reevaluate distribution strategies and focus on their supply
chain management. Amazon.com has set the gold standard of supply chain across
the U.S., occupying 2.1 million square feet in the market, targeting the area because
of its proximity to large population centers while adopting a same day delivery model.
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• Groups that were previously located along the East Coast of Florida are finding that
in order to compete they need to reach their customer base quicker with a central
operations base in the Central Florida area. With the amount of available vacant land
between Tampa and Orlando, groups are quickly setting up operations so they are
able to service two major metropolitan areas, while positioned near a major port in
the Port of Tampa.
• The Pinellas County submarkets continue to lead Tampa Bay in occupancy rates and
have seen robust growth in asking rates, with minimal new construction. The area
has severe land constraints for future industrial development, unlike East Ta \B