As the world reacts to the Covid-19 pandemic, demand from industrial users will change with the potential for powerful impacts on Florida markets. Industrial space is traditionally the most nimble and responsive to immediate changes in the economy, ramping up quickly when demand rises with projects shelved just as fast as the economy softens. Late in this cycle and driven by the rise in ecommerce, the size of warehouses grew with multiple dock high and/or grade level doors to maximize the efficient movement of goods. At the start of 2020, Florida’s industrial market had solid tenant demand driving significant speculative construction. Multiple projects in every major market were under construction or about to break ground over the next few months. As we adjust to a post Covid-19 world, several million square feet (msf) of proposed projects in Florida could potentially be postponed or shelved.
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