Vacancies in metro Orlando’s 91.5 million-sf industrial market are at 9.1% and climbing as 1.58 million sf of new product arrived in the second quarter.

The vacancy mark may go even higher by year end as another 1.82 million sf of new product makes its way to market, projects Grubb & Ellis Co. The last time vacancies hit the 9.1% mark was in second quarter 1998.

But Michael R. Shelton, vice president of Grubb & Ellis’ industrial services group, isn’t overly concerned because the absorption numbers remain strong. Second-quarter net absorption totaled 712,230 sf; year-to-date, 1.86 million sf. A total 8.3 million sf is vacant.

The 75.6 million-sf warehouse/distribution segment has 8.36% of its inventory, or 6.27 million sf without tenants. The 15.8-million sf research and development/flex sector has 12.9% or 2 million sf of its inventory vacant.

Rental rates dropped 24 cents in the second quarter, “due, in part to developer incentives which entice prospective tenats to fill their future and existing product,” Shelton tells Rates are expected to remain flat for the short term even though the market is in sound shape.

Metro Orlando’s largest submarket, the 28 million-sf Southwest/Beeline/Turnpike axis, has 2.97 million sf or 10.6% of its total inventory without tenants. Second-quarter net absorption in this market was 268,932 sf; year-to-date, 431,117 sf. Under construction is another 817,604 sf. Asking rents for warehouse/distribution are $4.67 psf; $7.58 psf for R&D/flex.

Telecom/carrier hotels that surfaced in first-tier markets two years ago are now spreading across metro Orlando. About a half million sf of of telecom hotels are under way or have recently opened here.

Among them: the four-story, 154,000 sf former JCPenney department store building in Downtown Orlando; the 113,000 sf, former Cosco building in Maitland; and a 75,000-sf, former bakery building being converted by US TechCenters at 2424 Orlando Central Parkway in Orlando Central Park.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt. NET LEASE Fall 2023Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.