Growing confidence in economy spurring Marion businesses to expand

Published: Sunday, March 15, 2015 at 4:18 p.m. Last Modified: Sunday, March 15, 2015 at 4:18 p.m.

Nolan Galloway III, president and broker of Gus Galloway Realty in Ocala, said he is seeing a lot of "inter-market jockeying" from Marion County businesses looking to expand.

"As a broker, this is probably the first time I've been (as) optimistic as I am now since, say, 2005, 2006, when we all thought the trees were growing to the sky," Galloway said. "We all learned a really hard lesson. What I like a lot better about now versus then is I'm not seeing any unrealistic growth. We're back to the real estate basics. This client is only going to buy that asset if it makes financial sense."

Bartow McDonald IV, managing director of Sperry Van Ness in Ocala, said his company's database shows about 504,631 square feet of large industrial space (more than 30,000 square feet) available in Marion County, with a vacancy rate of 5.8 percent, down from 6.75 percent in 2014, 10.8 percent in 2012 and 14 percent in 2010.

He estimates average rental rates for large industrial properties are in the range of $3.50 to $4 per square foot, triple net, meaning the tenant also pays property taxes, insurance and maintenance.

"Yes, we are definitely seeing companies in the expansion mode," McDonald said. "We've seen a marked difference in the last six months."

Both McDonald and Galloway say increasing confidence in the economy is spurring Marion County businesses to expand.

"There's more discretionary dollars in our own marketplaces," Galloway said. "I don't care if you're selling widgets, toilet paper or industrial buildings, you're selling more of them now than you were selling in 2011."

Businesses that have made the leap recently include Ocala Winsupply. Don Johnson founded the plumbing, heating, ventilation and air conditioning supply business in 2008. Johnson started the company, originally known as Ocala Winnelson, with four employees and steered his company through lean years, building it along the way.

On March 2, with the help of Mark DeBolt, a commercial real estate broker, Ocala Winsupply moved from 15,000 square feet at 3661 S. Pine Ave. to almost 45,000 square feet at 1500 SW 17th Ave. Johnson said his company now has 19 workers.

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Growing confidence in economy spurring Marion businesses to expand