ORLANDO—Clarion Partners and McCraney Property Company are developing the second two planned class A industrial buildings on a 17.1-acre site in Orlando Central Park. The industrial buildings will complete the project, which launched in 2012 with the construction of a build-to-suit property for Dade Paper.
Construction of the first industrial building was completed in May 2013. The two new industrial buildings are the 100,598-square-foot Building 2 and the 142,638-square-foot Building 3. The new industrial buildings should come online in the second quarter of 2014.
“We see strong demand from major corporate users in this submarket and anticipate limited new supply in the near future,” says Kristopher Arviso, a vice president at Clarion. According to Clarion’s research, the Orlando market is witnessing positive net absorption of industrial space. A total of 3.3 million square feet of industrial space was absorbed in the past two years and an additional 1.3 million square feet was leased up in the first quarter of 2013.
Industrial vacancy in Orlando stands at 9.7%, the lowest rate since the third quarter of 2008. Clarion expects vacancy rates to continue declining in the quarters ahead. Rent growth in the Orlando industrial market is expected to average 4.9% annually over the next five years.
Located at the entrance to Orlando Central Park, the site is considered one of the most strategic in the market. The industrial park offers frontage along the John Young Parkway, a major thoroughfare in metropolitan Orlando, and access to several major highways. Orlando Central Park is eight miles west of the Orlando International Airport at the intersection of the Florida Turnpike and Highway 4, the main north-south thoroughfare in the Orlando metropolitan area.