The Big Events in 2022

One of the largest headlines in Florida this year was unfortunately the devastation caused by Hurricane Ian. Thankfully, the Tampa MSA was fairly unaffected, but we cannot say the same for our friends and colleagues in Southwest Florida. The Colliers family came together to support those affected by Hurricane Ian and began a GoFundMe campaign with an initial goal of $25,000. We were ecstatic to break this goal within 24 hours and successfully concluded our campaign raising over $113,000 for relief efforts. We are incredibly thankful for some of our clients who allowed Colliers to utilize their vacant facilities to store and pack supplies. Once these supplies were packaged, many local members of our offices caravaned to the greater Ft. Myers region and hand delivered additional supplies to those affected by Ian. We could not have done any of this without our friends, partners, and colleagues, and pray for a speedy recovery for the Ft. Myers area. Additional information surrounding Colliers’ relief efforts can be found here.

Prologis Acquires Duke Realty

Prologis caused shockwaves in the commercial real estate industry when it announced an all-stock acquisition of Duke Realty Corporation in October; valued at approximately $23 billion. From a national standpoint, this transaction included the transfer of ownership of 142M SF of fully operational buildings, 7M SF currently under development, as well as 17M SF of developable land. From a more localized point of view, this acquisition more than triples Prologis’ footprint in Central Florida.

±1.3M SF

Existing Prologis Portfolio

±2.6M SF Legacy Duke Portfolio ±4M SF New Prologis Portfolio* + =

*Portfolio consists of Tampa Bay and Polk County

With the acquisition of Duke Realty, Prologis is now one of the top four largest owners in Tampa Bay (inclusive of Polk County) whose portfolio can accommodate tenants ranging from ~5,000 SF to ~450,000 SF under a single roof.

Treasury Report

We’ve seen unprecedented rate hikes by the Fed in 2022 with four consecutive rate hikes of 75 bps since May, and an additional 50 bps in December. The FED fund rate is at the highest level since the Great Financial Crisis and has increased at a pace unseen since the 1980’s. For the last two years, we’ve been at historic lows which has allowed for the economy to recover from the COVID pandemic. With rampant inflation, however, the FED is on a mission to cool off this hot economy. With SOFT moving in step with EFFR, we expect to model for higher rates moving into 2023. With rates being as high as they are, increases should start to slow; providing less volatility in the capital markets environment.

Expansion of the Southeast Capital Markets Team

We are excited to announce that we have reached an agreement to bring on two additional capital markets brokers to the Southeastern Industrial Capital Markets Team. A formal announcement will be made in Q1 2023 of whom the individuals are, their new roles and responsibilities, and the expertise that they bring with them.