The overall vacancy rate has dropped eight-tenths of apercentage point since the first quarter to 10.7% and netabsorption of 1.8 million sf is more than double the first period'svolume. Helping pad the net absorption number was the 565,927-sflease signed by locally based Leisure Bay at the former Recotonplant in suburban Lake Mary, a deal which accounted for 31% of allnet absorption so far this year.

"A quick glance at Orlando's mid-year industrial statisticsconfirms what has been anticipated for several quarters--the marketseems to finally have turned the corner," says Advantis researchdirector Lisa M. DeVore.

On the rental side, DeVore notes that "while the direct weightedaverage rental rate has in fact risen nine cents per sf since theend of the first quarter, that is largely a direct result of strongleasing activity in the bulk distribution sector." She says "adecrease in bulk availability inevitably puts upward pressure onthe average rate, so it should not be assumed that rates have yetbegun to rise."