Navigating Market Challenges: Addressing Low Inventory and Surging Demand Trends
Naples, FL. (December 2023) – In December 2023, 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.
As of the fourth quarter of 2023, Naples proudly holds one of the state’s lowest industrial vacancy rates, standing at a mere 1.3%. Despite a delivery of 940,000 SF in the third quarter of 2023, exclusively designated as a build-to-suit for Uline, this addition had no measurable impact on the overall vacancy rate within the market. Explore the nuances of Naples’ industrial landscape and its noteworthy performance indicators.
Explore Naples, a premier industrial market in Florida, renowned for its premium status with an average leasing rate currently set at $16.40/SF. Over the last 12 months, there’s been a noticeable deceleration in leasing rate growth, now resting at an annual rate of 8.0%. This marks a distinct shift from the peak observed just a year ago, when the market recorded an impressive 12% in annual rent increases.
Looking ahead in the year 2024, projections indicate a continued moderation in commercial rental growth in Naples. Forecasts suggest an annual average ranging between 4% and 6%, outlining a comprehensive picture for Bartley Realty to navigate the commercial market in the foreseeable future.
The industrial investment landscape witnessed heightened interest from 2021 to mid-2022, fueled by historically low interest rates and a surge of investors gravitating towards the dynamic Florida market. However, the investment scenario has experienced a decline in 2023, registering a trading volume of just $91.8 million over the trailing 12 months. In contrast, 2021 stood as a record-breaking year for the region, boasting an impressive annual sales volume exceeding $140 million.
While 2023’s figures may fall short of the previous peak, they significantly surpass pre-pandemic levels when the region achieved annual sales just above $60 million. Explore the shifts in industrial investment dynamics and the evolving market trends.
Southwest Florida Industrial Space for Lease or for Sale
Innovation at ITEC II
16330 Innovation Lane, Fort Myers, FL 33913 Units ranging from 2,025 to 20,000 square feet. Leases starting at $3,628 per month or purchases starting at $607,500. Anticipated completion in January 2024. If you are considering selling, leasing, or buying a Commercial Industrial Property in the Naples market, call David Bartley today at 239-784-3283.
Airport Haul RD Business Park
80,000 Square feet of Class A Flex Space with an anticipated delivery in June 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
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 October 2024 Offering units ranging from 2,460 to 17,441 square feet for sale or for lease. Call David Bartley today at 239-784-3283.
