New CoStar Industrial Report Shows Increasing Vacancies

A new Tampa Bay industrial survey released today by The CoStar Group shows industrial vacancies for the region edging up to 7.2% for the second quarter ending June, 2008 vs 6.2% for the first quarter. Rental rates sunk to $6.85/ft as opposed to the previous quarter. Net absorbtion for the area was negative 1,526,487 square feet vs. a positive 370,072 sf in the prior quarter.

Flex projects are showing the greatest vacancy, according to the report, at 10.4% at the end of Q2, 2008. That's up almost 1% from the previous quarter.

The warehouse sector is showing to be healthiest of all with a 6.8% vacancy rate, up only 0.7% from the previous quarter.

On the sales end, CoStar reports 24 industrial sales of buildings which are 15,000 SF and larger. The report shows the average price paid for these properties to be around $59/ft. Those sales are down from 28 transactions in 4Q 2007, averaging around $57/ft.

Cap rates are up to 7.93% compared to 1Q 2007, when they were at $7.75%.

Link to CoStar