The Tampa and St. Petersburg industrial submarket has been among the strongest and most robust sectors along the Gulf Coast since the region’s economic recovery began in 2011. Although the area has seen limited build-to-suit activity, few speculative projects have come out of the ground this cycle. Like the Interstate 4 corridor, between Tampa and Orlando, the Tampa and St. Petersburg market, which includes Hillsborough and Pinellas counties, along with portions of Manatee, Hernando, Sarasota and Polk counties, has been dominated by warehouse and distribution product, though so-called “flex” space — a combination of office and warehouse space favored by service businesses, has gained in popularity. Not surprisingly, vacancy has shrunk by more than 30% in the last three years.
Overall vacancy rate as of the end of the first quarter, for manufacturing, warehouse and distribution and flex space. By comparison, vacancy is roughly half of what it was four years ago. Some areas have not performed as well, however. Vacant flex space in Northwest Hillsborough County stands at 23.1%, though its available warehouse space is a scant 1.8%.
Average per square foot rental rate for the St. Petersburg/Tampa region’s industrial buildings as of March 31.
Total dollar volume of industrial deals completed in the final quarter of 2015 in the submarket, in 44 transactions, at an average price per square foot of $37.76. By comparison, $103.64 million traded in the third quarter of 2015, at a price per square foot of $37.15.
Amount Evergreen Industrial Properties spent in August 2015 to acquire five business parks in St. Petersburg. The Gateway Business Park, shown, was among 34 buildings and more than 1.66 million square feet that sold in all.
BY: KEVIN MCQUAID | COMMERCIAL REAL ESTATE EDITOR
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