Tampa's Industrial Market Shows Life

TAMPA, FL-The sprawling 133.5-million-sf Tampa Bay industrial market that takes in three surrounding counties is beginning to see leasing activity after three lackluster years, according to a new market analysis by the local office of Colliers Arnold.

About 1.8 million sf was absorbed by year-end 2003, more than the three previous years combined. The vacancy level has also improved, dropping to 8.7% from 8.9% in 2002. Even with that improvement, there is still 11.6 million sf of vacant space on the market, notes Kimberly Kaiser, a market research coordinator at Colliers Arnold.

“Like residential housing, low interest rates have had an impact on the industrial lease market,” Kaiser says. “Many tenants chose to buy smaller buildings during the last one to two year, driving prices markedly higher.” Still, she says, investors purchased “many larger buildings, in spite of the tenant drought in the area.” Kaiser predicts new construction starts should begin by the third quarter “if the economic upturn continues.”