Expert Analysis from Reach Commercial: Brevard County Industrial Market Trends for 2023
At Reach Commercial, we take great satisfaction in keeping up with industry developments and giving our clients the most accurate and current information available. We're thrilled to offer our professional views on the Brevard County commercial real estate market as we negotiate the final months of 2023.
Market Overview: Although the industrial sector in Brevard County is smaller than that in Orlando, it still has a lot of room to grow. The defence and space industries, especially in the Melbourne area, are growing, which is creating the conditions for significant development. With a total inventory of over 31 million square feet, the market is ready for expansion and smart investment.
Present Trends: An Expanded Commercial View One noteworthy development we've noticed is the unusually low vacancy rate—which stands at 2.5% at the moment. Although there has been a little uptick in this rate over the previous year, by year's end, we expect it will stabilize in the mid-2% area. This is a crucial sign of Brevard County's robust industrial space demand, which is encouraging for market participants.
Building and Demand Insights: Although demand is high, there are only 220,000 square feet of building currently under way. This comes after 110,000 square feet were finished during the previous 12 months. During this time, our team has observed a robust net absorption rate of 150,000 square feet, which indicates a balanced supply-demand situation in the market.
Analysis of Rent Growth: According to our data, the industrial sector's rent growth peaked at an annual rate of 11.7% but has since begun to decline. The current year-over-year growth rate is 8.7%, and by the end of the year, we expect a fall to the mid-7% area. For anyone planning or strategizing, whether they are a landlord or a tenant, this trend is essential.
Prospects for the Future by Reach Commercial: In the near future, the lack of available space may present some short-term difficulties for the Brevard County industrial market. Before the year is out, net absorption could turn negative, which would indicate a brief decline in industrial demand. Nonetheless, the region's sustained industrial expansion and economic development support a strong long-term outlook.
Reach Commercial is dedicated to helping our clients navigate the intricacies of the market as authorities in commercial real estate. The Brevard County industrial real estate market is a vibrant, changing environment that offers astute investors and companies some exceptional options.
For more in-depth information and professional analysis on this and other markets, stay tuned for weekly updates!