As the housing sectors improve in SWFL, the industrial real estate in this part of Florida is also expected to show more improvements in the future. This part of the real estate has gone stable after being badly affected by the economic crisis.
In a report that is presented by Cushman & Wakefield, there has been a decrease in the vacancy in the Fort Myers/Naples area. A year ago, the vacancy rate was at 8% and this year, it has slowly gone down to 2.5%.
The asking rates for such industrial spaces have also gone down. Last year, it had an average asking price of $5.02 per sq. ft. but this year it had gone down to $4.63 per sq. ft. This current asking price has decreased by 7.8% when comparing both data.
As the local housing market continue to recover, the industrial real estate would also take lead as demands for these spaces would further stabilize. Experts that this trend in the market would further continue.
Examples are small homebuilding companies that would require more space as their business expands. They would need more space to lease in order to store their building materials and equipment.
In the report that was published, there were also changes in the net absorption in the industrial space in SWFL. For Lee County, a total of 556, 893 new spaces were used while in Collier County, the new space used reached a total of 248,109 sq. ft.
The North Cape Industrial Park has been receiving express interest from companies to lease smaller units. These would come from smaller companies that have expansion plans and large organizations that are forced to downsize and reduce overhead costs.
The construction of new industrial space is on the downward trend due to the existing infrastructure that offers these spaces to companies. For the industrial real estate in SWFL to fully recover, it is hope that constructions of newer spaces offering 30,000 sq. feet or more will happen sometime soon.
The demand for bigger spaces is already high in the area, and if there are facilities that can provide more space, there would be more interested buyers.
Yet this has made developers cautious as they are not willing build space for companies without any current lease in place. If there is a lease that is already signed, more developers would probably have better chances of getting credit. Market analysts hopes that the next 6 months would bring better changes in the market.