Check out the latest data on the industrial market in Tampa.

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2018
Tampa Bay
Industrial Insight
The strong start to 2018 slowed a bit in the second quarter, yet market
fundamentals continue to remain strong. Over 350,000 square feet of positive
absorption nearly aligns year-to-date absorption with year-to-date deliveries,
a phenomenon we have not witnessed over the past five years. In fact, the
market is typically slow to build, as evident by the supply and demand chart
showing annual net absorption outpacing deliveries by a significant amount
each year. The better matchup this year has helped keep vacancy rates
hovering just over 4.0 percent for the market, and could be the first indication
that the ever shrinking availability of space could be relieved with new
construction in the second half of 2018.
Polk County was again the largest contributor to absorption for the quarter,
with Medline Distribution and West Logistics move-ins at the newly delivered
Medline Distribution Center in Auburndale as main drivers. Where the first
quarter was made up of a fewer, large transactions, absorption for the second
quarter was largely made up of small or moderate move-ins/outs. With over
3.0 million square feet of the currently under construction product scheduled
to deliver before the end of the year, large transactions could again be the
trend over the next six months.
Outlook
Another quarter of strong fundamentals lays a solid groundwork for the
handful of speculative projects coming online. The landscape is still favorable
to new, large blocks of space that are really only competing with other brand
new product given the lack of availability in existing stock. While the current
match up of absorption to the pace of deliveries could result in a stabilized
vacancy rate by the end of the year, asking rates and absorption should
continue to climb as new product continues to be leased.
Fundamentals Forecast
YTD net absorption 1,749,939 s.f. ▲
QTD net absorption 367,123 s.f. ▲
Under construction 4,353,388 s.f. ▲
Total vacancy 4.2% ▼
Average asking rent (NNN) $5.70 p.s.f. ▲
Tenant improvements Falling ▼
0
2,000,000
4,000,000
6,000,000
2013 2014 2015 2016 2017 YTD
2018
Supply and demand (s.f.) Net absorption
Deliveries
Vacancy rates steady with better match between
absorption and deliveries
9.4%
7.9%
6.6%
5.7%
4.8% 4.2%
2013 2014 2015 2016 2017 2018 YTD
Total vacancy
For more information, contact: Kyle Koller | Kyle.Koller@am.jll.com
• Net absorption, while still positive this quarter, was about 1/5th of the
activity we saw to start the year.
• Vacancy rates could be starting to level off, as we see new deliveries
keeping pace with annual absorption levels.
• Asking rate increases slowed to just a 0.5 percent increase quarter over
quarter, up 1.2 percent since the start of the year.
$0.00
$2.00
$4.00
$6.00
2013 2014 2015 2016 2017 2018
YTD
Average asking rents ($/s.f.)
W&D Manufacturing

2. Tampa Bay
Q2 2018
Industrial Statistics
Inventory
(s.f.)
Quarterly
total net
absorption
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
vacancy
(%)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Tampa Bay Totals
Warehouse & Distribution 151,659,310 624,685 2,115,116 1.4% 4.3% 10.0% $5.61 526,061 1,548,302 4,353,388
Manufacturing 53,810,073 -257,562 -365,177 -0.7% 4.2% 5.1% $6.18 30,200 30,200 0
Totals 205,469,383 367,123 1,749,939 0.9% 4.2% 8.7% $5.70 556,261 1,578,502 4,353,388
Submarkets
North Pinellas
Warehouse & Distribution 4,582,189 -40,060 -42,903 -0.9% 2.7% 4.0% $6.75 0 0 0
Manufacturing 2,018,122 -25,575 -25,575 -1.3% 2.4% 2.6% $5.75 0 0 0
Totals 6,600,311 -65,635 -68,478 -1.0% 2.7% 3.6% $6.53 0 0 0
Mid Pinellas
Warehouse & Distribution 7,410,276 46,492 63,979 0.9% 1.8% 5.7% $6.36 126,000 158,000 10,450
Manufacturing 7,928,235 5,108 4,608 0.1% 5.6% 7.3% $6.37 0 0 0
Totals 15,338,511 51,600 68,587 0.4% 3.8% 6.5% $6.37 126,000 158,000 10,450
Gateway
Warehouse & Distribution 9,917,207 113,856 -12,145 -0.1% 4.3% 8.7% $6.77 0 0 65,000
Manufacturing 7,977,817 -149,242 -216,765 -2.7% 7.6% 7.3% $6.08 0 0 0
Totals 17,895,024 -35,386 -228,910 -1.3% 5.7% 8.1% $6.48 0 0 65,000
South Pinellas
Warehouse & Distribution 7,016,165 -174,418 -164,460 -2.3% 3.8% 6.7% $5.10 0 0 0
Manufacturing 3,046,789 -35,327 -32,296 -1.1% 3.8% 6.6% $6.12 0 0 0
Totals 10,062,954 -209,745 -196,756 -2.0% 3.8% 6.7% $5.41 0 0 0
Westshore/Airport
Warehouse & Distribution 9,718,778 -50,445 -44,497 -0.5% 3.8% 6.3% $6.65 0 0 21,000
Manufacturing 2,824,723 7,394 41,724 1.5% 1.6% 3.0% $6.15 0 0 0
Totals 12,543,501 -43,051 -2,773 0.0% 3.3% 5.5% $6.59 0 0 21,000
East Side
Warehouse & Distribution 49,768,236 -157,286 93,181 0.2% 6.3% 13.2% $5.54 340,061 472,102 1,892,704
Manufacturing 10,444,871 143,402 160,613 1.5% 1.9% 4.4% $5.26 0 0 0
Totals 60,213,107 -13,884 253,794 0.4% 5.5% 11.7% $5.52 340,061 472,102 1,892,704
Manatee/Sarasota County
Warehouse & Distribution 22,991,507 38,858 104,676 0.5% 3.1% 5.6% $7.19 60,000 88,200 406,000
Manufacturing 8,486,933 -88,169 -153,997 -1.8% 4.0% 4.8% $7.80 0 0 0
Totals 31,478,440 -49,311 -49,321 -0.2% 3.3% 5.4% $7.34 60,000 88,200 406,000
East Polk
Warehouse & Distribution 15,647,713 669,391 1,206,925 7.7% 5.0% 14.8% $4.71 0 830,000 207,676
Manufacturing 3,808,800 -173,633 -173,633 -4.6% 5.7% 3.7% $2.47 0 0 0
Totals 19,456,513 495,758 1,033,292 5.3% 5.1% 12.7% $4.58 0 830,000 207,676
West Polk
Warehouse & Distribution 24,607,239 178,297 910,360 3.7% 2.2% 10.0% $5.04 0 0 1,750,558
Manufacturing 7,273,783 58,480 30,144 0.4% 3.1% 3.5% $6.99 30,200 30,200 0
Totals 31,881,022 236,777 940,504 3.0% 2.4% 8.5% $5.22 30,200 30,200 1,750,558
Kyle Koller | Senior Research Analyst
401 East Jackson, Suite 1500, Tampa Bay, FL 33602 | tel +1 813 387 1323 | kyle.koller@am.jll.com
2018 Jones Lang LaSalle IP, Inc. All rights reserved.