Orlando industrial real estate market reports

The Orlando industrial market hit a new record for the number of projects under construction, totaling 7.4 msf with 20% already pre-leased. As vacancy rates continue to sit at all-time lows of 3.9%, a wave of new development is on the horizon to fuel substantial industrial demand in Orlando.

Orlando recorded a third consecutive quarter of positive net absorption, totaling 472,902 sf, bringing the year-to-date net absorption to just over 1.7 msf. The three largest move-ins of the quarter were Escalade Sports, United Facilities and Scenario.

Industrial asking rents continue to climb at an unprecedented pace, resulting in a 5% increase from the second quarter to $10.25 per square foot (psf) NNN. With 7.4 msf of new inventory under construction and limited available space across the market, it is likely that rates will continue to trend upward moving forward.

Available space across the Orlando market is at a record low of 5.9 msf. Occupiers continue to chase high-quality warehouse space, leaving very little new inventory available in the market as it delivers.

Remaining at historic lows, Orlando’s overall vacancy ended the third quarter at 3.9%. As demand continues to outpace supply, vacancy is expected to stay relatively low for the near future.

Industrial sales volume in 2022 is on track to set a record as it has already surpassed 2021’s volume. After the recent interest rate hikes from the Federal Reserve, investors are parking capital in the industrial sector as the asset class is considered one of the safest to weather economic uncertainty.