Collier County Industrial Market

In the early 1990s, a manufacturer needing 10,000 square feet of industrial space could choose from over 25 vacant sites in Collier County. However, Southwest Florida's growth and booming economy have made similar space hard to find in today's marketplace.

With the strong industrial market, a number of new parks are currently being developed, and units within those sites are selling quickly. One factor that seems to add significantly to a site's success is location in close proximity to I-75. Even centers already in existence within this area have seen an increase in occupancy. An address close to the interstate is attractive for its convenient distribution opportunities as well as for the hassle-free access it allows current and future employees to commute from surrounding communities including North Fort Myers and Marco Island.

**The developers of Greyhound Commerce Park, located just off Bonita Beach Road, have only recently closed on their 40-acre site and already have 36 of the parcels under contract to other developers and users. Most tenants are businesses related to the building industry, including glass and marble manufacturers. The park features lots from a half an acre up to a 20-acre tract, with prices ranging from $5.50 to $6 per square foot.

**Similar to the Greyhound Park, the North Collier Industrial Center is also close to I-75 with its location off Old U.S. 41. With the increase in all types of construction in our area, this center will also eventually house a number of construction-related businesses, as well as a moving company. In July, this center was 65 percent sold and ready to begin construction of several spec buildings, two office buildings and auto repair shop. Prices range from $6.50 to $7 per square foot.

**An example of an established industrial park enjoying renewed success is Railhead Industrial Park. Located off Old US 41, this 40-acre site was originally developed in 1989 but sold out in just 18 months between 1996 and 1998. The owners have recently sold the last of their 41 lots, and there are 28 buildings within the Park. The last building, spanning 40,000 square feet, was sold to St. John's Corporation of Illinois, which will lease units with offices of 1,200 to 5,000 square feet. North Collier Industrial Center, located on the corner of future Livingston Road and South Old 41, is currently in the marketing stages. This is also a 40-acre site with 37 lots. It is currently 65 percent sold out.

Similar to the rising popularity of industrial sites near I-75, commerce areas surrounding Naples Municipal Airport continue to grow in number due to high occupancy rates.

**Naples Production Park, an industrial park adjacent to the airport, has recently experienced heightened activity -- at press time, this facility had no vacancy. Prices start around $5.95 per square foot with an additional sewer, water and road fee assessed. Construction trades occupy several of the units, with a majority of the units owned by the occupants rather than investors.

**There are plans to develop additional office space within Collier Commercial Park, located at Horseshoe Drive. These plans call for a total of 50,400 square feet fronting Airport Road with units ranging in size from 1,000 to 20,000 square feet. There will also be flex space within the back of each unit for warehouse availability. Prices will range from $12 for office space, $8.50 for light industrial manufacturers and $6 for warehousing. A common area maintenance (CAM) charge of $1.75 will also be included.

**With the success of industrial space at the airport, development is underway for the new North Collier Park of Commerce located just off Prospect Avenue. This site will include 27,000 square feet with prices starting at $9 for office space and $6 for warehouse. CAM charges will be around $1.30 per square foot.

**Creekside Commerce Park, developed by the Barron Collier Family, is a 107-acre site located at the southwest and southeast corners of the Immokalee Road and Goodlette Frank Road intersection. This park is the new home of Tyton Hellerman Manufacturing and the US Postal Service. Many parcels are still available.

**Although the newly opened White Lake Corporate Park doesn't market itself as an industrial center, most of its occupants are manufacturing related. Located at off State Road 951 at Exit 15, listing agents have said this park is the nicest looking parcel in Southwest Florida. The park includes lakefront sites, tree-lined streets, architectural design control and deed restrictions. The 150-acre "business community" is already 30 percent sold, with prices ranging from $6 to $6.50 per square foot.

With a majority of businesses flourishing in our market -- no matter what size unit a manufacturer occupies -- many are finding themselves quickly outgrowing their current accommodations and needing to find larger spaces. Currently, we're seeing an increasing demand for space in the 1,500 to 2,000 square foot range. These smaller units attract small businesses such as construction trades, small manufacturers, auto repair and warehouse users.

Our area has also seen a rise in investor-owned centers due to the large number of individuals looking to secure 1031 Tax Deferred Exchanges. Investors are moving to the warmer climates of the south and selling their properties in the north. In turn, they use the 1031 Exchange to purchase new investment properties in the south and defer from paying capital gains.

Similar to the overall current conditions of the commercial marketplace, we are seeing that both industrial lot offerings and products are being readily absorbed. Expect to see this trend continue in the near future.

Bill Gonnering, CCIM, is a member of the BCD Commercial Real Estate Team for the Wood Commercial Division of John R. Wood Realtors in Naples.