Q4 2017 commercial real estate snapshot shows new construction driving industrial market
February 12, 2018
The Tampa MSA’s industrial real estate market is experiencing low vacancy rates and increased construction activity, thanks to thriving manufacturing and distribution & logistics sectors. In Cushman & Wakefield’s latest industrial market report, the global commercial real estate firm noted that the overall industrial vacancy rate fell to 5.3 percent from 5.5 percent in Q4 of 2016. The overall absorption of 1.6 million square feet of space in 2017 marked a post-recession high, doubling the 2016 rate. And while leasing activity was up, new construction was a main driver for the market: nearly 1.5 million square feet of space was constructed in 2017. Nearly all major construction projects were 70 percent or more pre-leased before delivery.
New large lease transactions for Q4 included Advanced Airfoil Components, a joint venture of Siemens and Chromalloy. The manufacturer leased more than 210,000 square feet in the East Side/Central-South submarket.
To download the complete Cushman & Wakefield industrial Q4 2017 Marketbeat, please click here.