Scannell Properties and Hoover Development Partners have formed a joint venture to develop TIA Logistics Center, a 245,000-square-foot of warehouse and distribution center in Tampa. The project is the largest speculative industrial project in Tampa in the last 15 years.
The joint venture acquired the 20-acre development site in November for $4.8 million. JLL’s Julia Silva, Luis Castillo and Cody Brais represented the companies in forming the joint venture.
The development project is located in the Air Cargo entrance for Tampa International Airport in the Airport Industrial submarket. This is the most supply-constrained submarket in Tampa with a vacancy rate below 1%, according to research from JLL. The development is currently in the pre-construction phase of the project, currently working on permitting and entitlement approval. Construction is scheduled to begin sometime in 2021.
JLL’s John Dunphy and Peter Cecora will handle leasing for the property. Because this is the first property of its size in the last 15 years and current supply is limited, the JV expects robust leasing demand for the property.
While there is robust demand for warehouse and distribution space due to a rise in online shopping during the pandemic, a report from Cushman & Wakefield predicts that the supply-demand dynamics could shift next year. Industrial vacancy may gradually rise by 60 basis points to 5.8% by the end of 2021. It will then rise an additional 40 bps to 6.2% by year-end 2022. The C&W data suggests that continued new construction deliveries could alleviate some, though not all, of the pressure on supply-constrained markets.
Online shopping activity has driven new development. Cushman &Wakefield estimated 697.3 million square feet of new construction to deliver by 2022, and more than 51% of that space will come online in 2021. This will give tenants in some markets more options for industrial space.