Orlando industrial real estate market reports
With a quarterly vacancy rate of 3.7%, Orlando’s industrial market is continuing to experience strong performance from 2021 into 2022. Over 800,000 square feet (sf) of space delivered in the first quarter, leaving 1.7 million square feet (msf) under construction. Due to a lack of supply and strong demand, landlords continue to raise rents, resulting in a 10% increase year-over-year.
At the end of the first quarter of 2022, 1.7 msf was under construction in Orlando with 50% of it concentrated in the Airport-Southeast submarket.
Over 1.1 msf of positive absorption was recorded in the first quarter of 2022, amounting to a 32% year-over-year increase. Several large blocks were occupied during the quarter, with Imperial Dade and Fed Ex as the top two.
Direct asking rent
Demand for premium industrial space continues to outpace supply, causing landlords to raise rent prices. Orlando’s overall asking rents increased 10% year-over-year to $9.04 per square foot (psf).
The amount of industrial space available in Orlando decreased to a historic low of 5.4 msf as new inventory is being swept up as quickly as it delivers. In today’s market, tenants are seeking newer products with features such as higher clear heights and more dock doors to keep up with logistics demands.
The vacancy rate in Orlando fell to 3.7% in the first quarter of 2022—its lowest ever on a quarterly basis. Tenants continue to seek larger spaces to meet consumer needs as the demand for real estate continues to outpace supply.
Industrial investment sale volume rose by 167% year-over-year. Additionally, pricing continues to climb by increasing 62% year-over-year to $152 psf.
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