Industrial Sleeper - Fall 2018

Often overshadowed by the energy displayed by the residential market in Sarasota and throughout Southwest Florida, the region’s industrial properties have slowly and quietly been gaining in user and investor interest and in value. Although demand for industrial space has largely remained constant in Sarasota, sale prices have inched upward. The days of quality industrial buildings coming to market at prices of $60 to $70 per square foot are long gone, supplanted by triple-digit prices of nearly $100 per square foot. Even at that amount, however, one must consider that that is less than replacement costs, and must be viewed as such. One has only to look at the product that Harrod Properties is delivering in Lakewood Ranch, or to Benderson Development’s project along Interstate 75 in Ellenton to see that demand is robust. From a historical perspective, the rebound of industrial properties is significant, as well: The sector was one of the first to be negatively impacted by the Great Recession and it was also in this market the last to recover. As such, its recovery is a very good indicator of the overall strength of our real estate market, especially because such properties often house important services or serve as an integral part of local supply chains.