Florida’s Demand for Warehouse and Distribution Space May Soon Outpace Supply if the State’s Explosive Population Growth Continues
ORLANDO, FL, September 21, 2017 — Cushman & Wakefield announced today that it has published its 2017 Florida Logistics Report.
The report, authored by Florida Research Manager Chris Owen and Research Analyst Michelle McMurray, highlights Florida’s vital role in the global supply chain network and the unique strengths and challenges of its major logistical centers: Miami-Dade County, Broward County, Palm Beach County, Tampa, Lakeland, Orlando and Jacksonville.
Download a copy of the report here.
The 2017 Florida Logistics Report also examines the road, rail, air and sea capabilities and capacities for each of Florida’s major markets and analyzes the issues of supply and demand throughout the state. Notable findings include:
- Capacity and efficiency improvements over the next five years at Florida ports have the potential to capture market share from out-of-state ports and change supply chain dynamics.
- Highway and rail congestion throughout the state could lead to an increase in domestic cargo being shipped through the ports instead of overland.
- “Last Mile” delivery facilities remain limited in most markets due to density and a lack of existing options in urban cores, which will further push development opportunities to outlying submarkets.
- Future demand for warehouse/distribution space can be tied to forecasted population growth over the same period. Florida’s population is projected to grow by 1.3% annually to 2022. Given these statistics, over 32.0 million square feet of new warehouse/distribution space may be needed by 2022. Conservative estimates forecast the construction of 24.0 million square feet of new warehouse and distribution space in Florida by 2022, leaving an 8.0 million-square-foot shortfall.
The 2017 Florida Logistics Reports also details the past performance of each major market and provides a localized forecast for vacancy, rents, leasing activity and construction activity. Below you will find a brief overview of each of these markets:
Miami-Dade County
Miami-Dade’s 131 million square feet of warehouse/distribution space services the second largest metro market in the Southeast. Major distributors like the growing consumer base and interconnectivity between sea, rail and highway systems. Miami-Dade’s logistics network directly connects with end customers throughout the region and provides a strategic advantage over competing out-of-state markets. Many large e-commerce and logistics companies, including Amazon, Sysco and Fed-Ex, have recently expanded in the market.
Broward County
Broward County, a part of the second largest metro in the Southeast, is a major player in international trade with Port Everglades and an expanding international airport. Distributors are drawn to its central location in South Florida between Miami and West Palm Beach. Broward County’s
diverse labor pool and high quality of life has attracted several major corporations including AutoNation, American Express and DHL Express.
Palm Beach County
Palm Beach County is one the wealthiest counties in the U.S. with per capita incomes nearly 50% higher than state and national averages. Its strategic location makes it an ideal choice for companies that need to service the South Florida market. Distributors such as Aldi, Walgreens and UPS were attracted to Palm Beach County’s local market as well as its centralized location between Orlando and Miami.
Tampa
Over the past 10 years Tampa Bay has completely transformed into a powerhouse metro in the Southeast. Companies are tapping into the area’s diverse workforce, plethora of new development and access to multi-modal transportation. Tampa Bay is home to numerous corporate
headquarters such as Bloomin’ Brands and Raymond James, as well as major distributors such as Amazon and Ashley Furniture.
Lakeland
The Lakeland market has emerged as an industrial mecca along the I-4 corridor. With tenants such as Amazon, Publix and O’Reilly Auto Parts, the market continues to be one of the top performing industrial market in the country in terms of occupancy. Its strategic location between Tampa Bay and Orlando, near I-75, provides distributors’ access to millions of consumers within a few hours, making it an excellent location for a regional distribution hub.
Orlando
Central Florida/Orlando, the fastest growing metro in the country, recently became a hotbed for logistics companies looking to tap into a diverse workforce and growing population. Amazon, Walmart and PODS have recently opened or announced major distribution hubs so far in 2017. Orlando’s centralized location along the I-4 corridor gives logistics companies easy access to all of Florida.
Jacksonville
Jacksonville’s location and access to multi-modal transportation makes it an ideal location for logistic-oriented companies. It is the eastern terminus of I-10 with direct access to I-95 and home to two Class 1 railways. It is the most affordable warehouse/distribution market in the state with rental rates nearly half of Miami/Dade and comparable to other larger markets in the Southeast. Over the last several years, the area’s location and affordability have attracted several distribution hubs, especially for e-commerce companies, including expansions by Amazon, BMW and Fed-Ex.
“The logistics of efficiently moving goods through the state are increasingly a focus for new investment,” said Owen. “Billions are being spent chasing capacity improvement to maintain a world-class infrastructure that provides the state with unparalleled opportunity to be a trade hub for the next century. Florida’s ports, rail lines and interstate systems provide clear advantages over other markets for the movement of cargo in an ever-increasing interconnected trade network.”
Addded McMurray, “In the aftermath of Hurricane Irma, Florida’s logistics network will play a vital role in the rebuilding efforts. Major freeways and roads have been cleared, trains are running again, and the state’s ports are open for business after potentially losing $208 million per day in cargo revenue.”
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.
Media Assets
2017 Florida Logistics Report
Chris Owen Headshot
Michelle McMurray Headshot
