Tampa Bay Second Quarter Industrial Market Report | Tenant Demand Increases as Inventory Diminishes


Colliers International, Tampa Bay – Activity in Tampa Bay’s industrial market showed moderate growth over the previous quarter with continued positive growth anticipated throughout 2015. The industrial market continues to see interest from out-of-state users and investors seeking to relocate business operations to Florida due to the state’s improved economic growth, affordable tax structure and low costs of doing business. Quality industrial buildings remained in high demand throughout the second quarter with little existing class A inventory available for users seeking facilities meeting updated codes and features including higher clear heights, ESFR sprinklers and sensored lighting.

Highlighted Transactions

  • In Tampa Bay’s largest industrial sale of 2015 to date, Agellan Capital Partners Inc. purchased a 683,777 square foot industrial property, located at 6422 Harney Road in East Tampa from Regions Bank for $18.25 million.
  • Coca Cola leased a 150,000 square foot industrial facility at 1141 US
    Highway 301 in East Tampa.
  • RJ Schinner leased a 100,000 square foot building at Madison Industrial
    Park located at 4409-4429 Madison Industrial Lane in East Tampa.
  • Hillsborough County purchased a 90,408 square foot industrial center at
    1220-1238 Tech Drive in East Tampa for $8.7 million. The selling entity
    included: Leder Realty and Management, Musa Realty Group and Ramaekers Group.

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Warehouse Bootcamp Series: Lease vs. Own – Part 1 of 2


When considering your next facility move, I recommend taking some time to analyze whether leasing or owning makes the most sense for your business and personal investment strategy.  There are advantages and disadvantages to each option, some are strategic and some are tactical.  Let’s take a few minutes to explore some of the advantages and disadvantages associated with each and in a later post we will cover some recommended techniques for decision making:


Let’s define leasing. Leasing is a process where lessors (or landlords) provide lessees (or tenants) the physical use of a real property for a specified period of time without granting a specific ownership interest in the property. Leasing provides certain advantages and disadvantages for you, the business owner:


  • Less upfront capital required – Leasing can provide more flexibility for business owners that may require or prefer to keep cash invested in their businesses. In many cases it may make more sense to keep cash invested in the business than to invest in real estate assets. Less cash required upfront keeps the cash available for other uses.
  • Operating Lease costs are tax-deductible. Lease payments are operating expenses and are fully deductible against earnings. If the lease is a net lease and the lessee pays operating expenses in addition to rent, the operating expenses are deductible as well.

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Tampa Bay Industrial Market Report – Q1 2015: Developers Pursuing Industrial Land Sites

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Colliers International, Tampa Bay – Although 1st quarter’s activity was mostly consistent with the previous quarter’s results, a notable difference was the quicker speed at which transactions were closing, indicating increased confidence and a sense of urgency among tenants and investors as they make real estate decisions. Overall economic expansion and strong regional job growth played a major role in a healthy Tampa Bay industrial market. Construction, manufacturing, and packaging firms all experienced continued expansion as a result of the improving housing market and the recent opening of two major eCommerce distribution centers in the area. Developers are now pursuing industrial land sites for future development and landowners are anticipating better prospects for new development in the coming year.

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Warehouse Bootcamp Series: Due Diligence Checklist Tool

In The Warehouse Bootcamp, Tampa Bay Industrial Advisor Team Member, John Jackson offers valuable tips through a series of short videos developed specifically for business owners and managers that utilize industrial facilities.  In this first video, shot in a Lakeland, Florida warehouse, John highlights the importance of utilizing a due diligence checklist during acquisition.

To download examples of due diligence checklists, please click on the following documents:

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Commercial Real Estate Market Cycles Decoded

Is your next door neighbor’s brother-in-law (who is in the IT business) talking about buying real estate yet? If so, chances are, we are the expansion phase of the market cycle. As we’ve discussed in previous articles on TampaBayIndustrialAdvisors.com, commercial real estate is cyclical by nature and will continue to ebb and flow into the foreseeable future. There are many macro-economic factors that contribute to changing values of commercial properties. The macro business climate, supply chain shifts, interest rates, supply and demand of existing facilities, and geo-political factors can all contribute to the supply and demand for certain types of commercial properties.

While we have all heard that the first rule in real estate is ‘location, location, location’, we believe (and most industry veterans will concur) that it is just as important to consider ‘timing, timing, timing’. Determining the best time to buy and sell for your specific situation depends on a multitude of factors, many of which are related to your specific industry and your unique personal and business requirements. Market cycles should always be considered in that equation because timing can mean the difference between making and losing millions.

Market Cycle Graphic

To help decode the process for you, the business owner/manager, we have highlighted the most common characteristics of the four distinct phases of the commercial real estate cycle: Recession, Recovery, Expansion and Contraction. Continue reading

Tampa Bay Industrial Market Report – Q4 2014: Improvements Continue With Economic Growth

Florida continues to grow as an economic powerhouse, surpassing New York as the nation’s third most populous state. With unemployment continuing to decline and business expansions in Tampa Bay, business confidence was up, leading to an increase in all types of real estate activity.  In particular, Tampa Bay’s industrial market saw activity from users and investors. Leasing saw less activity due to limited quality properties available. Demand for product prompted Landlords to pull the trigger and begin building and/or placing properties on the market. Confidence in the market will position 2015 to be a good year for industrial real estate.

Market Indicators


  • In Tampa Bay’s largest industrial sale MDH Partners, LLC, purchased a 191,158 square foot industrial building, located at 2000 N 62nd Street in Tampa, from ABK Real Estate, LLC, for $8,011,450.
  • A 40,704 square foot industrial building located at 1307 E 2nd Ave. in Ybor City sold for $6 million. Trs Properties, Inc. sold the property to Tampa Electric Co. for $147.41 per square foot.
  • Sims Recycling Systems signed a 205,000 square foot lease renewal and expansion in the Hanna Distribution Center at 5806 N 53rd Street in Tampa.

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Trends to Expect in 2015: Tampa Bay Industrial Market

With many of us starting to focus on the holidays and getting into the season, we felt it was an appropriate time to put together a quick preview of some trends to expect in 2015 as a primer for January business planning. According to the research we are seeing, there’s a rare convergence of trends favoring industrial properties, and developers in this sector have an exceptional opportunity to capitalize as these trends align. An improving local economy, population growth, return of the homebuilding industry, supply chain shifts due to eCommerce, and the need for logistical firms to refocus on “last mile” issues are driving much of the change.


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