Orlando’s industrial market combats trends with impressive growth and strong tenant demand

graph of Orlando's industrial market square footage of new deliveries, net absorption and vacancy from 2016 to 2023
  • Orlando’s industrial market defied the odds in 2023, recording an annual 6.7 million square feet of new deliveries—the highest figure in eight years—despite a broader trend of decreased development activity. Notably, the surge was underscored by three building deliveries at Apopka 429, a 2.5-million-square-foot development in the Northwest market.
  • The overall vacancy rate experienced a notable uptick of 180 basis points year over year, reaching 5% by the end of 2023, yet remaining lower than the pre-pandemic average of 5.4% recorded from 2016 to 2019. New deliveries created the spike in vacancy, but it is expected to be short-lived as tenants build out their spaces and take occupancy in the first half of 2024.
  • Strong tenant demand in Orlando is driving up asking rates, with net absorption remaining positive and rents increasing to $9.99 per square foot NNN, up 5% year over year.

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