Industrial Market Thrives Despite Lack Of Quality Inventory

Colliers International, the Central Florida industrial market remained active as desirable space for lease continued to drop in supply, causing the market to tighten even further during the fourth quarter of 2015. Driving this broad-based industrial market is Central Florida’s thriving economy and subsequent job growth, as well as strengthening tourism and convention markets and an increase in local construction. Industrial investors were unmoved by the Federal Reserve’s interest rate increase and maintained a strong demand for product. The consistently low supply of quality product for sale in 2015 continued the trend of rapid sales processes and lightly inflated purchase prices. Market Highlights

• For the first time this year, the dollar value of consumer goods inventories held in warehouses became greater than in retail facilities. This trend is likely caused by the shift in supply chains and how consumers are purchasing more goods through e-commerce.
• Tenants are willing to spend more money to acquire quality leased space than they have in previous years. In response, owners and investors are updating and improving less desirable space to make it more suitable for lease.
• There was a significant demand for large space. At the close of the fourth quarter, there were at least six tenants in the market seeking product in excess of 100,000 square feet of space.

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