Advertisement
  1. Business

Tampa Bay emerges as one of nation's hottest industrial markets

Amazon opened the doors to its 1.1-million-square-foot fulfillment center in Ruskin last year. Tampa Bay has been singled out as a top 10 market for industrial real estate. 
[Times file photo] 

Published Feb. 1, 2017

Warehouses lack the glamour of luxury homes, but they are helping make the Tampa Bay area one of the nation's hottest emerging industrial markets.

The bay area vaulted from No. 28 to No. 10 last year in net leasing of distribution and light industrial space, according to a new report by Colliers International. Overall vacancy rates dropped to 6.3 percent despite more than 4.4 million square feet of new construction in 2016.

The bay area's location on the busy Interstate 4 corridor "has positive implications for distributors and manufacturers,'' said Ryan Kratz, Colliers regional president. "They say that if you can sell it or source it in Tampa Bay, you can send it by plane, train or truck anywhere on the planet. As a result, Tampa Bay is increasingly becoming the point of departure or arrival for goods and materials.''

Among the bay area's key strengths are a growing population that increasingly shops online. That trend is reflected in Amazon opening multi-million-square foot distribution centers in Ruskin and Lakeland.

Previous coverage: Have a look inside the 1-million-square-foot Amazon fulfillment center in Ruskin

Other major industrial space includes CSX's 218-acre terminal in Winter Haven that can process 300,000 containers a year. The surrounding 930 acres can potentially be developed into nearly 8 million square feet of distribution and light industrial facilities.

"The strong demand in the Tampa Bay market is showcased in net absorption, which finished the third quarter of 2016 at 4.6 million square feet year to date, the 10th highest level in the country,'' Colliers said. Net absorption is the change in occupied space during a given time period.

Bay area industrial rents, which finished the year at $5.06 per square foot, are expected to grow in 2017 as vacancies decline and prime Class A space is completed.

Among what Colliers calls "10 Emerging Industrial Markets to Watch in 2017,'' Columbus, Ohio ranked first, followed by Denver, Phoenix, South Carolina's Greensville-Spartanburg area, Indianapolis, Kansas City, Memphis, Nashville, Virginia's Shenandoah Valley area and Tampa Bay.

Contact Susan Taylor Martin at smartin@tampabay.com or (727) 893-8642. Follow @susanskate

ALSO IN THIS SECTION

  1. Tampa Bay Lighting host a watch party on the beach at the Tradewinds resort on St. Pete Beach in February. LUIS SANTANA  |  Tampa Bay Times
    TradeWinds is the biggest resort in Pinellas County.
  2. A view of the downtown St. Petersburg skyline and waterfront from over Tampa Bay.
    The news that the Tampa Hillsborough Economic Development Corporation wants to change its name to include “Tampa Bay” has been met with resistance.
  3. The Whole Coffee Company makes Dunkin’-branded Coffee Thins as well as Tim Hortons Double Double bars and its own Whole Coffee Company-branded nudge coffee bars. (Photo courtesy The Whole Coffee Company) The Whole Coffee Company
    The Whole Coffee Company, which is based in Miami, was previously known as Tierra Nueva Fine Cocoa. ProspEquity Partners of Tampa owns a majority stake in Whole Coffee.
  4. The Corona Cove opens as the Florida Aquarium's new outdoor bar. The beer company is pledging continued donations to aid conservation efforts. Florida Aquarium
    The beer company also has pledged donations to aid conservation efforts.
  5. The Triton cantaloupe, created with help from Eckerd College. Eckerd College
    The St. Petersburg college teamed up with a central Florida plant breeder to create the Triton cantaloupe.
  6. FILE - In this May 14, 2019, fiel photo, containers are piled up at a port in Qingdao in east China's Shandong province. China’s economic growth slowed to a 26-year low in the latest quarter as a tariff war with Washington weighed on exports and auto sales and other domestic activity weakened. The world’s second-largest economy expanded by 6.2 percent in the three months ending in September, down from the previous quarter’s 6 percent, data showed Friday, Oct. 18, 2019. AP
    Growth in the world’s second-largest economy slipped to 6% in the three months ending in September, down from the previous quarter’s 6.2%, data showed Friday.
  7. Ryan Cummings, 23, left, and Alex Frey, 25, both of Tampa, rent Spin electric scooters from a corral located along Zack Street in May. St. Petersburg hopes to soon launch it's own scooter program. CHRIS URSO  |  Tampa Bay Times
    The city wants to avoid other cities’ mistakes. Scooters will not be allowed on sidewalks and must be parked in designated corrals.
  8. Sam's Club fulfillment center manager Nick Barbieri explains to a shopper how the new Scan & Go shop works at 5135 S Dale Mabry Highway. SARA DINATALE  |  Tampa Bay Times
    The shuttered store has been reinvented and debuted to the community.
  9. Yogi Goswami
    The Molekule Air Mini is a scaled-down version of its original purifier.
  10. 580 Corporate Center in Oldsmar Jones Lang LaSalle Capital Markets
    The six-building center is 91 percent occupied.
Advertisement
Advertisement
Advertisement