Marcus & Millichap

Tampa-St. Petersburg Industrial Investment Forecast

2019 Outlook

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A Linchpin of Florida’s Distribution Network, Tampa Industrial Space Remains in High Demand

A growing populace and advantageous geography underpin industrial demand. Tampa’s population has been expanding at over twice the national pace for multiple years, improving the need for industrial space, especially by logistical servicer providers. This trend is further supported by the market’s key position midway along I-75 and at the western end of the I-4 corridor, which grants access to the rest of Florida. The increase in demand is reducing availability, prompting elevated development. This year will welcome the most new deliveries since 2008, with most completions arriving in East Hillsborough County. Notable arrivals in the area include the I-4 Logistics Center in Seffner and a multi-building industrial park near I-75 and Route 574. Less construction in other parts of the metro emphasize the value of existing space, adding upward pressure to asking rents. Above-average appreciation is expected in North Hillsborough, Pinellas and Hernando counties, where vacancy falls as much as 100 basis points below the overall level.

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