DAVENPORT, FL-San Francisco-based AMB Property Corp. has preleased 270,000 sf of space within the AMB Palmetto Distribution Center at 2314 Waverly Barn Rd. to a consumer electronics retailer. The retailer, which operates in the United States and Canada, is using the space as its service center to serve customers in Florida.

"The preleasing activity of this development project underscores the strength of the Orlando market," says AMB Property Corp. president, North America Gene Reilly. "With this transaction, AMB is expanding its relationship with a key customer which is leasing more than 430,400 sf from us in three markets."

The 406,400-sf AMB Palmetto Distribution Center provides access to the Interstate 4 corridor between Orlando and Tampa Bay, as well as Highway 27, which is an access route from central Florida to south Florida. The property is expected to stabilize in the second quarter of 2008.

According to a Grubb & Ellis Q4 industrial market report, Orlando has a total of 150 million sf of industrial space and was experiencing a 6.1% vacancy rate at the end of the year. There was 3.2 million sf of absorption during 2006 and 1.6 million sf under construction with average asking rental rates of $9.14 per sf.

"Looking forward into 2007, the trend in rent and price increases will continue as demand and absorption stay in balance," the report states. "While new construction will continue at a healthy pace, the limited supply of available land will protect the local market from negative impact."