X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

ORLANDO-These are good times and not so good times for the area’s 111.6-million-sf industrial real estate market, according to a new analysis by the Orlando office of Colliers Arnold Real Estate Services Co.

The good times for owners are reflected in the 8.3% vacancy level, one of the lowest in years. The not-so-good times are voiced by brokers who see a diminishing supply of industrial leasing space due to a lack of available developable land.

“As lack of product continues to effect the numbers, absorption is down slightly from 1.95 million sf to 1.13 million sf,” says Stan J. Sarnowski, director of market analytics and geographic information systems at Colliers Arnold. “Demand for Central Florida industrial space remains high and available space low.”

Vacancies are down all over Central Florida, except in Osceola County and Southwest Orange County. Market activity in Osceola County’s 4.5-million-sf industrial inventory “has been relatively dormant for some time now,” Sarnowski notes. “Much of the product in this market consists of class B, 20-year-old, owner-occupied space. The trend here is that owners and investors are holding onto product and developable land.” The researcher adds, “Lack of spec construction and build-to-suit is displacing vacancy in the area.”

In metro Orlando’s largest industrial submarket, the 36.4-million-sf Southwest Orange area, overall vacancy increased slightly. “However, at 7.8%, there is still considerably less overall vacant space than the 9.3% recorded at the same time last year and only a negative .5% from last quarter,” Sarnowski says. Direct vacancy is up to 7.2%.

Southwest Orange rents average $4.25 per sf triple net for warehouse and distribution space; $6.10 per sf NNN for manufacturing product; and $5.90 per sf NNN for flex and service space.

“Although things are slowing down a bit in Southwest Orange County, the market is still steady,” Sarnowski says. “Demand remains constant and rates continue to go up with slight increases recorded for warehouse, distribution and manufacturing rents.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.