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Healthy Industrial Market Short on 25,000-SF to 50,000-SF Product

ORLANDO-Although net absorption is up and vacancies are down, this 92 million-sf entral Florida sector lacks sufficient distribution and warehouse space to accommodate demand by the small user, according to Grubb & Ellis Co. The result is a flurry of build-to-suit activity.

By Alex Finkelstein | Updated on October 20, 2000

ORLANDO-With net absorption averaging 800,000 sf per quarter and vacancies down to 8.9%, the 92 million-sf Central Florida industrial market should be in sound condition. But it isn’t quite there yet, according to a new third-quarter analysis by the Orlando office of Grubb & Ellis Co.

Small users are scrambling to find 25,000-sf to 50,000-sf buildings. The bulk of the 1.4 million sf in new third-quarter construction in metro Orlando will serve flex-space users and large, 150,000-sf-plus warehouse/distribution tenants.

“The market is in a Catch-22 situation,” Michael Shelton, vice president of Grubb’s Orlando industrial services group, tells GlobeSt.com. “Despite the continuation of the prosperous economy and a plethora of new construction deliveries, small buildings for lease and for sale are in short supply.”

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