Tampa industrial real estate market reports
Tampa’s industrial market fundamentals have remained resilient throughout the economic headwinds. Robust demand has forced direct asking rents to increase by 14% year-over-year. The development pipeline is up 12% year-over-year with 6.1 million square feet (msf) under construction in December. The federal reserve increased interest rates two more times during the fourth quarter, resulting in a 4.25% rise in interest rates throughout 2022.
During the fourth quarter, absorption remained positive and brought the year-end total to 4.9 msf, which was down 43.9% from 2021’s historic record, but still outpaced 2020 and even pre-pandemic levels in 2019.
The industrial market experienced a 13.4% decline in leasing volume since 2021; however, 2022’s volume was up 15% from 2019 levels.
Robust demand has kept industrial developers busy as 5.7 msf of industrial space delivered in Tampa during 2022 which was down just 3.1% from 2021.
As of November, Tampa’s unemployment rate reached 2.6%, down from 3.1% recorded during the same period in 2021.
The overall vacancy rate remained relatively unchanged throughout the year at 5.3%, increasing by 40 basis points from year-end 2021.
Total investment sales volume for 2022 were down 20.2% from 2021’s historic year, but up 42% from pre-pandemic sales volume.
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