Commercial Connection: Industrial Market Statistics
Industrial Market fairs the best of all…
Mirror, Mirror on the wall… research shows that the Industrial Market fairs the best of all. Finishing 2010 with significant positive absorption of 133,343 square feet; an uptick in user leases has stabilized this previously meager market. Compared to negative 175,868 square feet at the end of 2009, that’s a significant difference. It’s not just the Southwest Florida industrial market that’s seeing decreased vacancy rates. Our Cushman & Wakefield global office recently released a report that provided an overview of the industrial market conditions in North America. According to the article:
Market indicators continue to track upwards and many major markets across North America are experiencing increased leasing activity and positive absorption. […] Global trade is helping to drive recovery, with several key metrics returning to pre-recession levels.
Cushman & Wakefield (C&W) research reports that the United States Industrial vacancy rate stabilized to 10.3% and overall absorption finished the year at positive 13.1 million square feet in 2010 compared to negative 125.2 million square feet in 2009.
That makes for 138.2 million square feet of absorption in 2010.
With new construction in the industrial market still at a standstill, more improvements in market conditions in Southwest Florida and beyond will eventually spur new construction and further improve Southwest Florida and the nation’s overall economic outlook.
Traffic in major ports and intermodal activity are up 17% over 2009. In fact, according to C&W Research, Los Angeles, Long Beach and Seattle broke containerized cargo records for 2010 after one of the worst recessions in history.
Our firm is receiving more inquiries from relocating industrial businesses requesting large build to suit facilities with room to grow. The Economic Development Office has also reported recent success in Southwest Florida from industrial businesses that have expanded in this market as well.
One of these recent successes is VR Laboratories, a leading global formulator and producer of FDA approved botanical pharmaceuticals and medicines. The company was awarded $5,000,000.00 for expansion plans, as announced by the Fort Myers Regional Partnership for the construction of a production facility to accommodate growth.
Growth in the industrial market means job creation and a further diversified economy. VR laboratories has plans to create 208 new full-time jobs in Lee County over the next five years with average salaries of $66,850.00.
Successes achieved recently by organizations like this one with the help of the Fort Myers Regional Partnership come amongst increasing lease volume in the industrial market in Southwest Florida.
Top 10 Southwest Florida Industrial Transactions for 2010:
1. American Freight leased 24,500 SF of warehouse space at Metro Parkway in Fort Myers
2. WorldPac leased 23,000 SF of warehouse space at Laredo Avenue in Fort Myers
3. Tibbetts Lumber Company leased 18,100 SF of flex space at Lee Street in Lehigh Acres
4. Volley Frog Florida Club leased 10,725 SF of flex space at Jetport Loop in S Fort Myers
5. Pathworks leased 7,973 SF of warehouse space at N Tamiami Trail in N Fort Myers
6. USA South Volleyball Club leased 7,500 SF of flex space at Drew Court in S Fort Myers
7. West Coast Powder Coating, Inc leased 6,170 SF of warehouse space at Hanson Street in Fort Myers
8. McDaniel Fire Protection Services, Inc leased 6,000 SF of warehouse space at Lacy Lane in S Fort Myers
9. Brooks Landscaping leased 6,000 SF of warehouse space at Production Circle in Bonita Springs
10. PCL Landscaping leased 6,000 SF of warehouse space at Pine Ridge Road in S Fort Myers
While the Industrial Market has seen the most significant improvement in our area, Retail, and Office markets have also stabilized. Face the facts – recovery is here. Watch for future updates on the retail, office and land markets.