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Polk County’s industrial real estate market is thriving, and the numbers speak for themselves. As of Q3 2024, the average asking rent reached $7.27 per square foot (psf)—an 8.8% year-over-year increase. This surge underscores the growing demand for quality industrial spaces and highlights the market’s transition to a landlord-favorable environment. For both current and prospective tenants, these trends present unique opportunities to strategize and adapt.Time to Evaluate Your Lease AgreementsFor current tenants, the steady rise in rental rates isn’t just a signal of a competitive market—it’s a call to action. Now is the time to take a close look at your lease agreements and future space needs. Here’s why this matters:<ul><li>Rents Are Rising: Locking in a renewal early or securing a longer-term lease can protect your business from additional rate increases as demand continues to grow. </li><li>Leverage Stability: A proactive approach to lease negotiations provides clarity and stability, allowing you to better forecast operational costs. </li><li>Opportunity to Upgrade: With many new, high-quality industrial developments coming online, tenants may find opportunities to relocate to a space that better suits their evolving needs while securing long-term cost efficiency. </li></ul>Steps for Current Tenants<ol><li>Review Lease Terms: If your lease is approaching renewal, consider renegotiating early to lock in current rates. </li><li>Explore Expanding: With new developments delivering state-of-the-art facilities, it may be time to evaluate if an upgraded space can support your business’s growth. </li><li>Engage Experts: Partnering with a knowledgeable broker can help you navigate this competitive market and identify opportunities that align with your goals.</li></ol> Why Prospective Tenants Should Act NowFor businesses considering a move or expansion into Polk County, the rising rents are a sign of a market brimming with opportunity. Securing space sooner rather than later could save significant costs over time, especially as demand tightens. Additionally, Polk County offers: Act Today for Long-term Benefits The key takeaway for both current and prospective tenants is to act strategically in this landlord-favorable market. Evaluate your needs, lock in favorable terms early, and position your business for success in Polk County’s booming industrial real estate sector. As rents continue to rise, proactive planning can help you stay ahead of the curve while securing the space that best supports your operations.For tailored advice, leasing opportunities, or more information about Polk County’s industrial market, give us a call at 407-949-0752 or email us at zcichocki@realvest.com

Rising Industrial Rents in Polk County

Finding the perfect industrial space for your business is a critical step toward ensuring operational efficiency and growth. Whether you're moving, renewing, or expanding in Lakeland, Auburndale, Bartow, Plant City, or Mulberry, selecting the right warehouse space requires careful consideration and strategic planning. Here are some key factors to help guide your decision-making process.1. Location, Location, Location The location of your industrial space can significantly impact your business operations. Proximity to major highways, transportation hubs, and suppliers can reduce logistical costs and improve delivery times. For businesses operating in central Florida, areas like Lakeland, Auburndale, Bartow, Plant City, and Mulberry offer strategic advantages due to their central location and excellent transport links.2. Space Requirements and Layout Assessing your space requirements is crucial. Consider the size and layout of the warehouse in relation to your business activities. Do you need high ceilings for stacking products? Is there sufficient dock space for loading and unloading? Understanding your current and future space needs will prevent costly relocations or expansions down the line.3. Infrastructure and Amenities The infrastructure of an industrial space can make or break its suitability for your business. Look for properties with robust electrical systems, proper ventilation, and adequate heating and cooling facilities. Additional amenities such as office space, restrooms, and break areas can also enhance employee satisfaction and productivity.4. Zoning and Compliance Ensure that the industrial space you choose complies with local zoning regulations and industry-specific requirements. This includes checking for permits, safety codes, and environmental regulations. Compliance with these regulations is essential to avoid legal issues and operational disruptions.5. Accessibility and Transportation Easy access to transportation routes is essential for the smooth movement of goods. Evaluate the proximity of the industrial space to major highways, railroads, and ports. Also, consider the availability of public transportation options for employees who may rely on it.6. Cost Considerations While the cost of leasing or purchasing industrial space is a significant factor, it's important to consider the total cost of occupancy. This includes utilities, maintenance, property taxes, and any potential renovation costs. A cost-benefit analysis will help you determine if a space fits within your budget without compromising on essential features.7. Future Growth Potential Choose an industrial space that can accommodate your business's future growth. Whether you're planning to increase production, hire more staff, or expand your services, having a flexible space can save time and money in the long run. Consider properties with room for expansion or those that offer short-term lease options with renewal potential.8. Find a Broker Who Specalizes in Industrial Real Estate Navigating the complexities of the industrial real estate market can be challenging. Engaging a commercial real estate broker specializing in industrial properties can provide invaluable assistance. A broker will have in-depth knowledge of the local market, access to exclusive listings, and negotiation skills to secure the best deal for your business.At NAI Realvest, we specialize in helping businesses find the perfect industrial space in Lakeland, Auburndale, Bartow, Plant City, and Mulberry. Our expert team is dedicated to understanding your unique needs and providing tailored solutions that drive your business forward. Contact us today to start your search for the ideal industrial space.Conclusion Finding the right industrial space for your business involves a thorough evaluation of various factors. By considering location, space requirements, infrastructure, zoning, accessibility, costs, and future growth potential, you can make an informed decision that supports your business goals. Don't hesitate to seek professional assistance to streamline the process and secure the best possible space for your operations.

How to Find the Right Industrial Space for Your Business

Large hangar warehouse industrial and logistics companies. Warehousing on the floor and called the high shelves.

Key Market IndicatorsHillsborough County, encompassing Tampa, is experiencing a period of stabilization. The vacancy rate stands at 5.1%, which aligns with the region's 10-year average. The market has seen a shift towards build-to-suit (BTS) projects, which are expected to stabilize vacancy rates in the coming years.Leasing and Rent TrendsLeasing activity in Hillsborough has slowed, particularly for big-box spaces over 100,000 square feet. However, the smaller spaces under 25,000 square feet remain highly active. The market's asking rent has grown by 9.8% year-over-year, with the average rate now at $12.60 per square foot. This growth, while still robust, has slowed compared to the peaks seen in previous years.Construction PipelineHillsborough County has a significant construction pipeline, with over five million square feet currently underway. Notable projects include build-to-suit facilities for Coca-Cola and Target, each exceeding one million square feet. The speculative construction, such as Foundry Commercial's 533,350-square-foot warehouse in Plant City, also highlights the ongoing demand for industrial space.Strategic Advantages of Polk and Hillsborough Counties Location and InfrastructureBoth Polk and Hillsborough counties benefit from their strategic locations along the I-4 Corridor, providing easy access to major highways, ports, and airports. This makes them ideal for logistics and distribution operations, attracting significant investment and development.Affordability and AvailabilityPolk County offers some of the most affordable industrial rents in Central Florida, averaging $8.80 per square foot, compared to over $12.00 per square foot in neighboring markets. This affordability, coupled with a large inventory of new and available space, makes it an attractive option for businesses looking to expand or relocate.Future Outlook The industrial real estate markets in both Polk and Hillsborough counties are poised for growth. As the new developments lease up and the market stabilizes, vacancy rates are expected to decrease, and rent growth is likely to continue at a healthy pace. The ongoing investment in infrastructure and the strategic advantages of these locations will continue to drive demand for industrial space.For investors, developers, and businesses, Polk and Hillsborough counties offer a dynamic and promising environment. Whether you're looking to lease, buy, or invest, the opportunities in these markets are abundant and varied.Contact Zach Cichocki at NAI Realvest for more information on industrial real estate opportunities in Central Florida. Our team specializes in providing tailored solutions to meet your industrial real estate needs.

Hillsborough County: A Balanced Industrial Market

warehouse construction site, steel structure, concrete polished floor and roof is done

The industrial real estate market in Polk County is experiencing significant growth and transformation, making it a prime location for investors, developers, and businesses. Situated along the critical I-4 Corridor, Polk County's strategic location plays a pivotal role in the distribution of goods across Florida and beyond.Key Market StatisticsVacancy Rate: 8.7% Market Asking Rent Growth: 7.7% year-over-year 12-Month Deliveries: 2.6 million square feet 12-Month Net Absorption: -260,000 square feet Leasing Trends Polk County's industrial market is heavily influenced by big-box leasing activities. However, there's been a noticeable decline in such activities over the past 18 months. In the first half of 2024, only one new lease exceeded 100,000 square feet. Notably, LifeScience Logistics leased a 422,000-square-foot facility at Dalfen Industrial's Midpoint Florida Logistics Center, accounting for over a third of the total leasing activity.Despite the slowdown in large leases, significant renewals have bolstered the market. Key renewals include ParkSite's 175,000 square feet at Lakeland Logistics Center and PlayCore's 200,000 square feet across three buildings in Parkway Partner Park.<figure id="figure-sh8f38fhply4n8ir6"><img id="sh8f38fhply4n8ir6" src="https://cdn.durable.co/shutterstock/5jTig03T8Y9oP2VZhvSV3jhLZidriWsacjtWRFfPbouTC4VeBbcYtwkaw47QdFeM.jpeg" alt="Construction site, steel frame structure is under construction" title="Construction site, steel frame structure is under construction" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/shutterstock/5jTig03T8Y9oP2VZhvSV3jhLZidriWsacjtWRFfPbouTC4VeBbcYtwkaw47QdFeM.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Construction and Development Polk County has been one of Florida's most active industrial submarkets for new construction. Approximately 25% of its inventory has been delivered in the past decade, with 2.5 million square feet completed over the past year. This includes Tratt Properties' 1.2 million-square-foot speculative cross-dock warehouse in Winter Haven, which remains vacant, impacting the market's vacancy rates.The slowdown in new leasing activities has led to a reduction in new construction starts. Currently, 650,000 square feet are under construction, with Stonemont Financial Group's 350,000-square-foot Lakeland Commerce Center Building 400 being the next significant project set to deliver.Market Challenges and Opportunities The Polk County industrial market faces challenges with its high vacancy rates, primarily due to new construction outpacing tenant demand. Of the 4.1 million square feet delivered since the end of 2022, 85% remains available for lease, including one of Florida's largest vacancies at Central Florida Logistics Park Building One.However, Polk County's affordability remains an attractive feature. Industrial asking rates, currently at $8.80 per square foot, are the lowest in Central Florida compared to markets like Tampa and Orlando, which average over $12.00 per square foot.Future Outlook Despite the current challenges, the outlook for Polk County's industrial market remains positive. Asking rent growth is expected to return to pre-pandemic norms of 4% to 5% by 2025. As the market stabilizes and new developments lease up, vacancy rates are likely to decrease, offering more balanced supply and demand dynamics.Conclusion Polk County's industrial real estate market is at a crucial juncture, presenting both challenges and opportunities. Its strategic location, coupled with competitive rental rates, makes it an appealing destination for businesses and investors looking to capitalize on Florida's robust logistics network. As the market adjusts to recent developments, Polk County is poised to strengthen its position as a key player in the industrial real estate sector.For more information on industrial real estate opportunities in Polk County, contact Zach Cichocki at NAI Realvest. Our team specializes in providing tailored solutions to meet your industrial real estate needs.

Market Updates

Rising Industrial Rents in Polk County

How to Find the Right Industrial Space for Your Business

Hillsborough County: A Balanced Industrial Market

Polk County's Industrial Real Estate: A Rising Star in Fl...