Despite widespread damage to low-rise and mid-rise warehouse,distribution and shop properties by Hurricanes Charley, Ivan andJeanne, third-quarter vacancies of 9.5% were an improvement from10.5% in the second period. Positive net absorption of 2.8 millionsf compared with 873,579 in the second quarter.

Average asking base rents, however, were down. Warehouse rentsare averaging $4.78 per sf; flex space, $8.15. In the secondquarter, warehouse average rents stood at $5.70 per sf; flex, $9.49per sf. But warehouse rents this year are topping 2003 which woundup with an average $4.32 per sf for the year. Flex rents averaged$8.19 per sf for the entire 2003 period.

"While the full impact of three unprecedented natural disastersin a six-week period remains to be seen, the Orlando industrialmarket is showing signs of recovery," says Grubb & Ellismanaging director Jeffrey Sweeney. "Metro Orlando is showing anincreased intensity in private construction, despite a nationalshortage of building materials." he adds, "The Orlando area is alsoleading the state in job growth, all indications of a healthierindustrial market."