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TALLAHASSEE – Along Interstate 4 between Orlando and Tampa, there is nearly 500-million square feet of industrial projects underway. Foundry Commercial partner Justin Ruby says the state has a “recipe for success” when it comes to encouraging businesses to invest in Florida.
Although high inflation-related costs have hindered the ability of developers to keep up with demand, “incredible year-over-year rent growth” has offset those challenges, according to Ruby.
Florida has a pro-business mindset, which has set it up to have years of steady growth. According to Ruby, “We’re a very stable, healthy economy with incredible demand drivers with individuals and companies moving to the state for the pro-business climate. The primary corridors are within the bookends of Orlando and Tampa. That’s where residential rooftops are growing, so that’s where industrial follows.”
Rather than focus on pre-leasing for projects, Ruby added that projects are leasing up a few months after delivery, and the market is stabilizing. Advanced technology also is playing a key role in logistics.
According to Ruby, “Data helps make good decisions. There’s certainly been a refinement and an acuteness to the data that we’re using to make business decisions for ourselves and our clients. There are also cost-saving measures that developers are using to entice tenants to a building that can help save on occupancy costs.”
Using natural light and clerestory, high-efficiency LED lighting and installing above-standard insulation in the roof deck to keep the warehouse cool are just some measures that can attract tenants. Modern amenities, quick turnarounds, and an ability to start operations quickly are key to attracting tenants.
Source: Orlando Business Journal (09/27/24) Williams, Breanne
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