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Preparing for the Next Industrial Downturn

ORLANDO—Fundamentals support a strong finish for 2016 with some uncertainty headed into 2017 in the Tampa Bay area. So says Colliers International…

By Jennifer LeClaire | jenniferleclaire | | Updated on August 01, 2016
The industrial market in Central Florida continues to show robust activity in leasing and sales. The industrial market in Central Florida continues to show robust activity in leasing and sales.
ORLANDO—Fundamentals support a strong finish for 2016 with some uncertainty headed into 2017 in the Tampa Bay area. So says Colliers International Tampa Bay industrial real estate specialist John B. Jackson . But that doesn’t mean we shouldn’t think ahead. As evidence, he points to an economy that has witnessed 76 straight months of slow and steady recovery. By comparison, he says, the average length of an economic cycle since World War II is 58 months. Based on where the market is headed, how should industrial users and owners prepare for the future? That’s the final question we asked Jackson as part of our exclusive interview series . “With the Central Florida economy humming along on all cylinders, preparing for the next downturn is not necessarily a priority for most industrial owners and users,” Jackson tells GlobeSt.com. “However, with some strategic planning and execution now, you can improve your outcome during tough times.” With that, Jackson offers some preparation tips he is discussing with industrial users: “Sell any undesirable assets,” he says. “Now is the time to dispose of any underperforming or non-performing properties that you would have difficulty leasing during a recession.” What’s more, he suggests optimizing your portfolio by recapitalizing and repositioning. Analyze and reduce your operating expenses, he says, and recapitalize your portfolio while credit is still available and the cost of capital is still near historic lows. “For those who lease, remember it’s a landlord’s market,” Jackson says. “Expect rental rates and operating expenses to continue rising for the next six months to a year before leveling off. If you must lease, negotiate maximum flexibility into your lease terms to provide your business with maneuverability if needed during the next recessionary period.” Central Florida CRE remains strong with Multifamily, Retail and Industrial leading the way. Are You In The Know? How can you profit? Join us at RealShare Central Florida on September 7th for impactful information from the leaders in Central Florida CRE.Learn more.

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