Q3 2019 Commercial Real Estate Market Report

Polk County

Our Commercial Market Report provides verified sales data for properties in Polk and Lake counties along the I-4 Corridor. In addition to expert economic trend analysis, the report covers the Top 10 Sales in:

  • Industrial
  • Office
  • Retail
  • Multi-Family
Cover of the Q3 2019 Polk County Florida Commercial Real Estate Market Report

INDUSTRIAL

As the main East/West connector in the State of Florida, I-4 has made Polk County a hotbed for industrial activity. From Q3 2018 to Q3 2019, the county added more than $235,000,000 to the assessed value of industrial inventory. In the same time frame, there were approximately 4,400 new jobs created (bls.gov). This is great news for everybody, and we have many businesses, organizations, and authorities here in our community to thank for their hard work over
the past year.

OFFICE

Many have followed the national headlines surrounding WeWork. The company’s eccentric founder has been accused of profiting to the tune of millions while driving the company into staggering losses. However, WeWork has catalyzed the prevalence of coworking space throughout the United States, even in smaller cities like Lakeland and Winter Haven. Lean Spaces in Lakeland, My Office and More in Lakeland, and The Lodge in Winter Haven all saw quick success and have ongoing waiting lists. 

RETAIL

Here are a few other interesting overall retail statistics. This is the fourth year in which restaurant sales (NAICS 722) were greater than
grocery store (NAICS 4451) sales. Walmart continues to be a dominating force for retail. Walmart sales are slightly more than 8% of total retail sales (NAICS 44, 45, 722 less auto dealers – 4411). E commerce sales were 10.8% of total retail sales through the third quarter, and a record-high 11.2% for Q3 2019.

MULTI-FAMILY

Nationwide market rents rose nearly 3% year-overyear with just a few exceptions, most notably in nearby Orlando where they are reporting a slow-down in rent growth of just 1.3% year-over-year. Reported occupancy levels nationwide came in at 94.9%. The outlier is the ever increasing cost of new construction. In speaking with several developers, we are being told that the cost to construct new Class A three-story garden style apartments is somewhere near $175,000
to $180,000 per unit.

Please note that there is a considerable delay between the close of the quarter and when the data included in this report becomes available. This is our most recent quarterly report.