According to a recent Colliers Industrial Market Report for Tampa, the area’s demand for industrial space maintained its strength, buoyed by one of the lowest vacancy rates ever recorded--4.8%. The absorption of almost five million square feet of space represents a 35% increase year-over-year, reflecting the strong demand for warehouse and flex space. And this strong demand has resulted in a 17% increase in asking lease rates over the last two years.
Drilling down, we find that much of the industrial space demand can be traced back directly to the rise in e-commerce sales, which topped out at over $220 billion in Q2 of 2021, accounting for 13.3% of all retail sales. A great deal of this growth and demand were from companies seeking to secure warehouse space for last-mile delivery services. These third-party logistics (or 3PL) tenants included major fulfillment companies like Amazon--which just purchased 25 acres to build a new distribution center near MacDill Air Force Base, FedEx, UPS, and DHL.
It appears that when consumers demanded convenience, industrial space became commercial real estate’s darling. And according to Yardi, a leading property management provider, industrial supply growth won’t be fading away any time soon. Even with 350 to 370 million square feet of new space being delivered every year through 2026 across the United States, the demand will continue to outpace supply of space. This will most certainly make it a more challenging and competitive marketplace to do business. Tenants seeking industrial space will be looking at far fewer options that will be more expensive.
Because industrial space has reached a premium, it’s important for companies to use every tool available to them. This is where TenantBase’s online marketplace can provide an advantage. You can search for available space, and get connected to local broker partners who will work with you throughout the leasing process, including helping uncover additional property options, organizing property tours, and negotiating the most favorable lease terms in this red-hot industrial market.
With TenantBase’s help, the commercial real estate industry is beginning to adopt and embrace an on-demand, technology-enabled, marketplace model which can make searching and leasing the perfect space much faster, easier, and economic. We invite you to come see what’s possible at TenantBase.