We sat down with JLL Associate, Ryan Vaught, to learn about the challenges being presented in the Tampa industrial real estate market.
What is the largest challenge facing Tampa’s industrial market today?
Year-end vacancy in the Tampa market is at an all-time low, most notably in Pinellas county. There is a clear lack of available space, and the small amount of space that is available is not of a high quality. For this reason, tenants are seeing rent increases – a 5.1% increase year over year in the Tampa area, with Pinellas county in particular seeing an overwhelming 14.5% increase year over year.
Are there any new projects on the horizon for the Tampa market?
The amount of space in new projects coming to market in 2016 was higher than has been seen in years. New construction delivery (in total square footage) in 2016 was more than four times larger than it was in 2015. While there are a few notable projects ramping up in Hillsborough County, the highest construction rates can currently be found in East Polk County, with approximately 1.2 million square feet of space in the works.
What advice can you give to users looking for industrial space in the Tampa market in the coming months?
Be proactive. There will be unquestionable scarcity in selection. The best way to ensure the ultimate choice of space in this limited market is to start early and waste no time. The earlier you begin working with your real estate advisor, the better your chances of finding the right space.
About the Author
Ryan Vaught’s responsibilities within the firm focus on business development efforts for both tenant representation and agency opportunities throughout Tampa Bay, in addition to leveraging his experience in the private equity field for capital markets transactions.