COMMERCIAL REAL ESTATE:
Across the U.S., new development and spending for office, industrial, warehouse and retail contributed $376 billion to GDP in 2013, supporting 2.8 million jobs with wages and salaries of $120 billion, according to NAIOP, the Commercial Real Estate Development Association.
During Q2 2014, the Central Business District submarket had the area’s lowest reported vacancy in Tampa at 15.1 percent. Also, Tampa Bay’s office market experienced a total net absorption of 28,704 square feet.
In both Metro Orlando and Tampa Bay, construction and mining is projected to be the fastest-growing sector from 2014 to 2017, according to the University of Central Florida’s Institute for Economic Competitiveness. Projected growth for this sector in Metro Orlando and Tampa Bay is 10.2 percent and 7.8 percent, respectively.
With official 2014 numbers expected to close stronger than 2013, consider this: According to McGraw Hill Construction, $4.5 billion worth of residential and commercial building permits were filed across Metro Orlando in 2013, a 43 percent increase from 2012. Also notably, more than $2 billion worth of projects were permitted in the City of Tampa during FY 2014, surpassing the previous record of $1.78 billion permitted in FY 2007 during the height of the real estate boom.
In terms of Metro Orlando warehouse/distribution/service centers under construction, Lake Nona/Orlando International Airport has more than double the activity of any other area, with a total of 1,097,497 square feet rising, according to Cushman & Wakefield Research Services.
For Metro Orlando, BidClerk data showed that more than 250 new construction projects were released for bid in Q2 2014 with contracts valued at $800 million. For Tampa Bay, more than 500 new construction projects were released for bid with contracts valued at $450 million.