Central Florida's Industrial Sector Passes 90 Mil-SF Inventory Mark

ORLANDO-Like the 28 million-sf office sector, Central Florida’s robust industrial market is pausing this year as demand begins to catch up with a record supply of 92.6 million sf, flying by the 90-million marker for the first time.

A new Grubb & Ellis Co. analysis shows net absorption and new construction in 2001 and 2002 will slow down while average rents for research and development/flex space and warehouse/distribution will rise about 3.25% this year. But the overall industrial sector will continue to be a runaway engine, Grubb’s industrial specialist Michael Shelton tells GlobeSt.com.

“The wave of telecommunication development, which began to take shape in first-tier cities, is now in full swing across metro Orlando,” Shelton says. Over 500,000 sf of telecom hotel space is under way or has recently opened. But new construction isn’t going to set any records this year or next, Shelton says.