Originally Published March 7, 2017
Why is Industrial Real Estate so hot and active, as the darling of commercial real estate, and why should it continue?
The storage needs related to warehousing for e-commerce, retail sales and other inventory all require warehouse, distribution and flex space for storage and assembly/production of goods before they reach our consumer doorsteps. This is due to smaller stores, last-mile delivery, population growth, and the resurgence of manufacturing in the United States.
Personal Income Increases in 2017
Over the winter of 2016, along with January’s start to 2017, personal incomes have increased at a slightly higher percentage meaning people have more money to spend. Business inventories increased, monthly wholesale inventories and advance wholesale inventories were fairly stable, retail inventories increased, the trade deficit increased as imports increased and exports decreased.
In addition, new orders for durable goods increased in January, new residential sales increased, and new orders for manufactured goods increased in December. All pointing to increases in demand for space that’s needed to store and ship the products consumers and businesses buy.
Well located industrial property with workforce accessibility, large demographic reach, existing infrastructure for distribution and a pro-business environment will benefit the most (i.e. The I-4 Corridor, Plant City and Lakeland). Add to that the current administration’s focus on infrastructure spending plus tax cuts and you can see that added employment should spur more activity in search of industrial space.
All that being said, the governmental policies that are planned all take time and could go either way, so time will tell how long this darling will or should last.
Moral of the story, call the experts at Fortress Commercial Real Estate, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida. Fortress Commercial Real Estate adds value to business owners looking to grow through their real estate, office and building needs.
There’s an elephant in the room we want to talk about, Fortress Commercial Real Estate. A commercial real estate brand in Tampa Bay made of over 30 years of Florida experience and local real estate knowledge. Paying attention to Florida real estate so you can pay attention to growing your business.
Contact us online, call us at 813.444.3330 or email us at kostas@FortressCRE.com for more sound advice.