ORLANDO—Are industrial deals getting harder to close in Central Florida? With so much activity in South and North Florida ports, what does the future hold for the Orlando area?

GlobeSt.com caught up with David Murphy, a senior vice president with CBRE Orlando, to get some answers. Be sure to go back and read part one of our exclusive interview if you missed his take on market trends and drivers.

GlobeSt.com: Are deals taking longer to close?  Is that due to the economy or just because?

Murphy: Deals are still taking a long time to close as operating cost reduction remains a major focal point. However, the deals themselves are getting longer as well.  

Where we had been doing 12- to 24-month lease renewals a few years ago, corporations are much more willing and able to commit to terms of five to 10 years to lock in what they perceive to be lower market rents today. This appears to be a good strategy as the continued increase in demand coupled with few new projects underway will place upward pressure on lease rates.

GlobeSt.com: What does the future look like?

Murphy: If things continue to track the way they have in the first half of 2013, Central Florida is poised for a strong resurgence in 2014. Increased interest in Orlando from large investors, the willingness of tenants to sign longer team leases, and the limited supply of existing buildings for lease or sale will allow market rents to finally begin to increase.  

We are already seeing industrial sales prices increasing. We may never see the activity we saw in 2007, and that might be a good thing, but the overall market health is very strong. Tenants and buyers interested in Orlando may want to make the move now, as we are expecting continued improvement in the Central Florida industrial market in the coming quarters.