Navigating Market Challenges:
Addressing Low Inventory and Surging Demand Trends
Naples, FL. In February 2024, the Naples industrial market, positioned along the Gulf Coast of Florida, stands out as one of the region’s smallest yet robust sectors, boasting a total product space of 14.5 million SF. Over the past year, the market has demonstrated resilient industrial fundamentals, contributing to a remarkably low vacancy rate and consistent gains in leasing rates.
Vacancies in the Naples industrial market is 1.4% and have increased by 0.3% over the past 12 months. Meanwhile, the national average increased by 1.9%. During this period, 960,000 SF has been delivered, and 910,000 SF has been absorbed. Total availability, which includes sublease space, is 1.6% of all inventories.
Within this market, logistics space is by far the largest subtype with 8.3 million SF in this category, followed by 4.6 million SF of specialized space and 1.5 million SF of flex space. At a combined total of 14.5 million SF, Naples is smaller than the average industrial market.
Rents are around $16.70/SF, which is a 7.3% increase from where they were a year ago. In the past three years, rents have increased a cumulative 31.4%. Furthermore, this is a structurally expensive market, with rents significantly higher than the national average of $11.90/SF.
There is nothing under construction. There have been 75 sales in the past year. Sales have averaged $220/SF, and the estimated value for the market as a whole is $172/SF. The most frequent of these transactions have been those of logistics space, with 36 sales. This tracks with the overall mix in the market, as the subtype is the largest in Naples.
Over the past three years, there have been 297 sales, which have traded for approximately $376 million. The market cap rate for Naples is 7.6%, moderately above its trailing three-year average of 7.1%. Although both employment and population have grown in the past year, employment growth has outpaced population growth. The number of jobs has increased 1.3% in the past year, while the population has grown by 0.3%.
Sales
There have been 75 sales in the past year. Sales have averaged $220/SF, and the estimated value for the market as a whole is $172/SF. The most frequent of these transactions have been those of logistics space, with 36 sales. This tracks the overall mix in the market, as the subtype is the largest in Naples.
Over the past three years, there have been 297 sales, which have traded for approximately $376 million. The market cap rate for Naples is 7.6%, moderately above its trailing three-year average of 7.1%.
Economy
Economy Naples Industrial Naples is the southernmost market in Southwest Florida. The region is one of the most affluent in Florida, with a median household income of approximately $80,000. One-third of the area’s population is aged over 65 fueling a robust healthcare industry. While the region has historically been a retirement destination, population growth for person’s aged 20-29 and 30-39 has led the region over the past five years, up over 9% and 4%, respectively.
Employment growth has slowed considerably here, according to the Florida Bureau of Workforce Statistics and Economic Research, Naples added approximately 1,200 jobs over the past year as of November 2023. The leisure and hospitality sector led the region in job gains, adding 900 years over year. However, several industries recorded year-over-year job losses, with professional and business services leading the region with 1,100 jobs lost.
Bartley Realty LLLP:
Revolutionizing Southwest Florida’s Industrial Flex Space Market
Strategically positioning itself, Bartley Realty LLLP extends its reach to offer Industrial Flex Spaces in prime locations across Southwest Florida. With Linekin Development in its portfolio, Bartley Realty LLLP introduces innovative flex spaces designed to cater to the needs of startups and established enterprises alike.
Projects currently underway:
Southwest Florida Industrial Space for Lease or for Sale
Innovation at ITEC II – Developer Financing Available
16330 Innovation Lane, Fort Myers, FL 33913 One 2,025 square foot unit available. Leases start at $3,628 per month or purchases start at $607,500. Available for immediate occupancy. Call David Bartley today to schedule a showing 239-261-1186.
Airport Haul RD Business Park
80,000 Square feet of Class A Flex Space with an anticipated delivery in April/May 2024 with unit sizes starting at 1,500 square feet for sale or for lease. Call David Bartley today at 239-784-3283.
Beck Business Park
Located at the intersection of Beck Blvd and Collier Blvd in Naples.
Naples’ Luxury Flex Space Development, scheduled for delivery in December 2024, featuring units ranging from 1,530 to 76,000 square feet for sale or for lease. Call David Bartley today at 239-784-3283.
Tollhouse Flex Suites
3920 Tollhouse Dr, Naples, FL 34114 – Flex Space development slated for delivery in January 2025. Offering units ranging from 2,460 to 17,441 square feet for sale or for lease. Call David Bartley today at 239-784-3283.
