Low Inventory and High Demand
Naples, Fla. (July 5, 2023) – The Naples industrial market is one of the smallest in Southwest Florida, with approximately 13.5 million SF of industrial product. It boasts one of the lowest vacancies in the region, at just 0.9%. CoStar is forecasting Naples vacancy rate to remain low in the coming years in large part due to limited speculative construction. Construction deliveries are elevated this year, as 940,000 SF has been delivered in the past 12 months. However, much of that is the recent completion of shipping wholesaler Uline’s 937,000-SF build-to-suit facility. The current pipeline is a fraction of the past year’s completions with just 47,000 SF under construction.
Industrial leasing so far this year has been on the smaller side, with less than five tenants leasing over 5,000 SF. Screens Over Marco was the largest new lease at 6,000 SF in the Mercantile Business Center in February 2023. Naples is easily the most expensive industrial market in Southwest Florida, with an average asking rate of $15.50/SF. Asking rents continue to rise and are up 9.4% year by year as of the second quarter of 2023.
Investment activity has picked up in a meaningful way in 2023, with the 23Q1 equaling more than double the amount of volume recorded in 22Q4. 95 properties have traded for a total sales volume of $96.9 million over the past year, as such industrial sales are typically for under $1 million. The largest sale so far this year was the $2.6 million ($233/SF) sale of a warehouse for flooring company Pro Floors along Rail Head Boulevard to a local investor.
If you are considering selling, leasing, or buying a Commercial Industrial Property in the Naples market, call David Bartley today 239-784-3283
David R. Bartley, SR
Bartley Realty LLLP