Suncoast Small-Bay Industrial Portfolio
FOR SALE: Small-Bay Industrial Portfolio | ±160,000 SF | Sarasota MSA
Marketing description
Institutional Property Advisors (IPA) is pleased to present Suncoast Small-Bay Industrial, a two property, 161,570-squarefoot multi-tenant industrial portfolio located in Palmetto and Bradenton, Florida. The portfolio is offered at a market-driven price, is 92.5% occupied across 77 units, and generates an in-place net operating income of $1,842,000 with a Year 4 proforma NOI of $2,680,000.
The Palmetto asset at 722 17th Street East consists of 13 buildings and 46 units totaling 100,020 rentable square feet on a single 8.43-acre parcel, built between 1986 and 2000. The property features 88 drive-in loading bays, 14-foot warehouse clear heights, and 279 parking spaces. The Bradenton asset at 6130 and 6152 15th Street East consists of 18 buildings and 31 units totaling 61,550 rentable square feet across two contiguous parcels totaling 4.82 acres, built between 1972 and 1981. The Bradenton property features 26 drive-in loading bays, 14-foot clear heights, and 140 parking spaces.
Suite sizes across both properties range from approximately 400 to 9,000 square feet, and average around 2,000 square feet, accommodating a wide variety of service and small-business users. Both campuses offer grade-level loading with overhead doors throughout, individually metered buildings, and independent climate control per suite, physical characteristics well-suited to a broad range of tenant uses and supportive of low-cost lease-up of any vacancy. Additionally, approximately 68% of the suites contain bathrooms, with the remainder being serviced by multiple common bathrooms in each property.
The in-place rent roll reflects a weighted average lease term (WALT) of one year and eight months, with approximately 27% of square footage rolling in Year 1, 16% in Year 2, and 49% in Year 3. A meaningful number of in-place leases are below current market levels, with select tenants 30% to 80% below the prevailing $16.00 per square foot NNN industrial rate, presenting a clear near-term opportunity to capture mark-to-market rental upside as leases expire.
Prior ownership completed a capital program totaling over $1.26 million across both properties covering 40% new roofs and additional roof repairs, exterior painting, interior renovations, road improvements, signage, landscaping, fencing, and security cameras. The Sarasota-Bradenton small bay industrial market posted record leasing demand in 2025 with vacancy at approximately 4.0%, and new supply metro-wide is forecast to fall to a decade low in 2026, providing a favorable backdrop for sustained occupancy and rent growth through the hold period.
Investment highlights
- SIGNIFICANT MARK-TO-MARKET RENTAL UPSIDE: The entire tenancy rolls over within three years, with in-place rents ranging 30% to 80% below the $16.00 per square foot NNN market rate. At a WALT of just one year and eight months, that reset begins immediately.
- STABILIZED, MULTI-TENANT PORTFOLIO: The portfolio is 92.5% occupied across 77 units spanning two campuses, with 12,060 square feet of available space as of June 2026. The granular, multi-tenant structure provides broad income distribution with no meaningful concentration in any single tenant.
- RECENTLY COMPLETED CAPITAL PROGRAM: Current ownership invested over $1.26 million across both properties, covering new roofs and roof repairs, exterior painting, interior renovations, road improvements, signage, landscaping, fencing, and security, reducing near-term capital needs for incoming ownership.
- FUNCTIONAL PHYSICAL PRODUCT WITH WIDE SUITE RANGE: Units range from approximately 400 to 9,000 square feet and average around 2,000 square feet. Approximately 68% of the suites contain bathrooms, with the remainder being serviced by multiple common bathrooms in each property. The units also include grade-level loading, overhead doors, and individual utility metering serving a wide range of small-business uses and supporting straightforward lease-up of vacancy with minimal landlord cost. Additionally, the nearly one-acre, unbuilt portion of the property at the southwest corner has been newly rezoned for Industrial Outdoor Storage.
- STRONG PROFORMA NOI GROWTH: The 10-year proforma projects NOI growth from just over $1.84 million in-place to over $2.68 million by Year 4 and $3.2 million by Year 10, driven by annual rent steps, mark-to-market resets on rolling leases, and gradual lease-up of current vacancy. The newly zoned IOS acreage is also expected to produce an additional $50,000 of income once fenced and rented.
- SUPPLY-CONSTRAINED MARKET WITH FAVORABLE OUTLOOK: Small-bay vacancy in the Tampa-Sarasota corridor sat at approximately 4.0% in early 2026, compared to 12% for buildings over 100,000 square feet, with new metro-wide deliveries forecast to fall to a decade low in 2026, supporting continued rent growth and occupancy stability.
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