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Newer industrial product fetching healthy premiums

  • ​A need for warehouse and distribution industrial product that caters to both new-age structural requirements and the growing desire for aesthetically pleasing buildings has development across the Tampa Bay region on the rise. 20 foot clear heights may still work for some firms, but the new norm approaches 28, 32 even 36 feet, and the older product in the market simply cannot accommodate. Just as true is a shift in aesthetic preferences, with latest industrial product designed to add more appealing front office, natural light sources, and higher class façade. Of course, an increased construction cost for such buildings is met with healthy rent premiums across the Tampa Bay submarkets.

  • Post 2000 construction across Tampa averages a 15% rent premium compared to their pre 2000 counterparts, with some submarkets seeing higher rent premiums than others. It seems geographic factors such as centralization and access helps play a role in just how much more developers can charge for their relatively newer product. ​

Source: JLL Research, Tourism Economics

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