New Frontiers

Well stated by Robert Richter, the proximity to infrastructure is often a driving factor of site selection over being 7 miles from an elevated highway in an infill, established market. A common theme across each of the firms investing in our emerging markets is a focus on the dwindling supply of available product and land, combined with the growing occupier demand, for our established infill markets. Rooker’s Cason Bufe explains that “Looking at Pasco County, we heavily considered the dynamics of the East Tampa market –strong and growing demand with the limited supply.” However, this philosophy is appearing only applicable to those emerging markets immediately abutting the established Tampa Bay submarkets (Pinellas, East Tampa, Airport); Ocala has not proven to be a benefactor of this notion.

Key Takeaways

• Underwrite an additional period of 6 – 8 months downtime in these markets.

• Closely monitor the development pipeline to maximize variety in what is built.

• Design your building(s) capable of catering towards the growing “light manufacturing” sector.

What’s Happening in Ocala?

Marion County, or better known nationally as the greater Ocala area, is home to notable occupiers such as Chewy, Auto Zone, Amazon, FedEx and Dollar Tree. This developing industrial market has gain eyes of some of the country’s most active developers primarily due to I-75, one of two north-south interstates in Florida. A Florida Department of Transportation study concluded that 70% of the truck traffic in the state can be found passing through Ocala via I-75; this study alone created a supportable thesis to predict an evolving industrial market. While the supply and demand in Ocala is currently in a very Tenant favorable situation, the market should be fine given the diversity in existing offerings.

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