Flight to Quality Industrial Space

For the fourth consecutive quarter, Tampa Bay’s industrial market registered positive net absorption - 130,639 square feet .This marks the first four quarter span of positive net absorption since Q2 2006 - Q2 2007. Vacancy rates went unchanged from the previous quarter, remaining at 10.3 %. Asking lease rates rose for the first time in four years, ending the year at $4.55 per square foot triple net. Flight to quality continues to remain the common interest with class A quality space priced at what were once class B rates. We expect a drop in quality in the remaining vacant space.