Newmark Knight Frank (NKF) has announced the completion of one sale and two significant leases for three industrial buildings in the Tampa Bay market.
In the first deal, Hunt-Wilde Corporation sold its 98,000-square-foot warehouse to Wholesalers Property Company for $3.5 million.Located at 2835 Overpass Road in East Tampa, the industrial building was originally constructed as a mobile home manufacturing facility, and later converted into an injection molding facility, making parts for recreational and commercial products and industrial manufacturers.
Winsupply, a leading supplier of residential and commercial construction materials and a subsidiary of Wholesalers Property Company, will occupy 100 percent of the building. Senior Managing Director at NKF Rick Narkiewicz and co-broker John Jenkins, president of Jenkins Property Advisors, represented the owner/seller.
In the second deal, Narkiewicz represented the landlord, Duke Realty, and negotiated a 242,932-square-foot lease with Solar City, also known as The LeverEdge. Solar City will occupy approximately 55 percent of the 442,874-square-foot industrial building. Building 200 is a part of Tampa Regional Industrial Park, located in southeast Hillsborough County.
In the third deal, Narkiewicz represented a high-tech manufacturer, Materials Lifecycle Management Company (MLMC), and negotiated a 102,551-square-foot lease within a new industrial building. Constructed in 2017, the 168,480-square-foot building is located at 2401 South County Line Road in Plant City, Florida.
MLMC uses its proprietary technology to turn non-recyclable coated paper cardboard, Styrofoam, plastic films, wood materials and other process or packaging materials into an energy-dense fuel it calls Enviro-Fuelcubes. The clean, cost-effective cubes are engineered to augment or take the place of fossil fuels such as coal. To date, the company has displaced over 200,000 tons of coal. The new tenant will create approximately 45 high paying jobs in Hillsborough County.
According to NKF Research, Tampa’s industrial market has now seen demand outpace supply for more than four years, with approximately 386,000 square feet of positive net absorption taking place during the second quarter of 2018. Industrial leasing activity in the Tampa market increased significantly compared with that of previous quarters, as 198 transactions totaling over 2.5 million square feet were completed during the second quarter.
Nine warehouse buildings touting approximately 2.6 million square feet are projected to come online over the next year in the metro Tampa Bay area. Just under half is spoken for, and 650,800 million square feet of that can be attributed to Best Buy’s new distribution facility underway in Polk County, which is expected to be completed in the third quarter. A full report on Central Florida’s Industrial Market is available here.
“With significant new warehouse inventory slated to deliver in the Tampa market, we expect slight increases in vacancy; however, we anticipate demand for industrial space will continue to outpace supply over the next 12 months,” said Narkiewicz. “Industrial continues to be a highly sought-after product type, especially Class A properties, which sell for around the low to mid-$90s per square foot when they come on the market.”
About Newmark Knight Frank
Newmark Knight Frank, operated by Newmark Group, Inc. (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. ("BGC") (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
