SOUTHEAST SNAPSHOT, JANUARY 2005

Orlando Industrial Market

In Orlando, Florida’s industrial market, a lack of quality available product has prompted more new construction and higher sales prices, according to Carole Sealock, research and marketing manager with Grubb & Ellis|Commercial Florida in Orlando. “Vacancy is declining, and absorption is up,” she adds.

The majority of industrial development is taking place in south Orange County because the majority of the available land is in south Orange County. Fort Lauderdale, Florida-based Abdo & Burts LLC is planning to develop a 300,000-square-foot small-bay industrial project in Airport International Business Park (South Orange Business Park). Pertree Constructors is building the project.

The Home Depot has recently absorbed more than 500,000 square feet in the metro area for distribution use, according to Sealock. Other recent leases include 108,000 square feet of warehouse space to Exel Logistics at 180 Cypress Lake Dr. and 101,600 square feet of warehouse space to Pennington Seed Inc. at 11401 United Way.

Rental rates in the Orlando area average $4.43 for warehouse product and $7.94 for flex space.

Vacancy rates are steadily decreasing, Sealock says. “During the first and second quarter 2004 there was no change in vacancy; it was at 10.5 percent,” she explains. “Third quarter saw the vacancy rate drop a full point to 9.5 percent.”

“Poinciana and the US 27/I-4 corridor should be up-and-coming growth markets for the near future, because there is still plenty of dirt and room for expansion,” says Sealock.

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