Market Mondays: Tampa - Dec 2

YardDogs check out the IOS market in Tampa

December 02, 2024

Tampa when they hear they’re the Market Monday Feature

YardDogs -

Welcome back! In this edition of Market Mondays we take a deeper dive at IOS in Tampa, FL. This IOS market is supply constrained and in demand. At the end of the newsletter we’ve outlined some of the recent trades and a few of the YardDogs in this market!

In today’s email:

MARKET OVERVIEW
Tampa Bay, FL

Why Tampa Bay?

Tampa is home to approximately 395,000 people. Tampa experienced a ~6% increase in jobs YoY and has no state income tax, making it an attractive destination to move to. Florida’s population has grown 5%+ since 2020 (US Census data).

Economic and population growth, along with a strategic location near maritime ports and major interstates, make investing in Tampa compelling.

Tampa Bay's industrial outdoor storage related growth is fueled by its strategic location near the Port of Tampa and major highways (I-75 and I-4). East Tampa is viewed as one of the most sought after submarkets due to its positioning near main thoroughfares, but there are other strong IOS submarkets throughout Tampa that have unique advantages.

Top Companies to Know in Tampa

Fisher Investments
Cisco
General Dynamics
HDR
IBM
EPAM Systems
Novetta
Procore Technologies
Gartner
Check out this link for a full list. 

Industrial Market Outlook

According to JLL, Tampa Bay’s industrial market is set for strong absorption through 2025, driven by major build-to-suit completions like Coca-Cola (1.2M SF) and United Natural Foods (1.0M SF). Confidence is further boosted by recent Fed rate cuts, which will likely spur investor and tenant activity.

IOS Market Trends

E-commerce growth and supply chain disruptions continue to fuel the demand and need for the industrial outdoor storage sector. According to JLL, IOS land costs have surged 32% in the past 18 months, reflecting soaring demand. The $3 billion of institutional capital raised during the summer of 2024 to target IOS has likely contributed to the price increases. 

CLOSED TRANSACTIONS
Acquisitions and Dispositions

Aerial view of 4434 Maine Avenue (Photo: Business Wire)

ACQUISITIONS: In August, Alterra IOS acquired 3 IOS sites totaling 12.4 AC. The properties are located close to downtown Tampa, offering easy access to Tampa International Airport, Port Tampa Bay and major highways. Lee & Associates, Axiom, and Jimmy Ulrich of Colliers Tampa separately assisted Alterra IOS in facilitating these acquisitions.

ACQUISITION: Last month, Zenith acquired a 5.18 AC site at 211 Pride Road, Tampa, FL. The property was sold for $5,300,000, and featured 11,231 sqft of improvements.

ACQUISITIONS: Jadian IOS acquired IOS portfolio of 6 sites, 3 of which are in Tampa. The three additions last month add to Jadian’s Tampa IOS portfolio. Great acquisitions by Jadian as they build density in Tampa.

Redfearn Capital acquired 10301 Fisher Ave. on Tampa’s east side

ACQUISITION: Last month, Redfearn Capital acquired an IOS site in Tampa’s east side for $5.8M. The building is 35k sqft that sits on a 4AC site with 2AC of outdoor storage.

Know of other great Tampa IOS acquisitions from 2024 that we missed? Send us a note at [email protected] or just reply to this email. We answer every email you send our way!

Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.