Orlando's industrial rents are on the rise as vacancy continues to decline - United States
Orlando's industrial rents are on the rise as vacancy continues to decline
Orlando’s industrial market has experienced a steady rise in asking rents, with the average NNN asking rent reaching $10.77 per square foot as of the second quarter of 2023. This represents a 62.9% increase since 2019.
The climb in asking rents directly correlates with lower industrial vacancy rates over the same period. Although vacancy rates have experienced only a slight increase since 2022, the current 3.6% vacancy rate still represents a 47% decrease from 2019’s levels.
With an additional 5.6 million square feet of new supply under construction, asking rent growth is expected to continue as tenant demand remains concentrated on the newly delivered product. Orlando’s industrial market has benefitted from its strategic location in Central Florida as a vital logistical hub connected to multiple markets across the state.