That's good and bad news for area property owners. The direct vacancy mark covering 934 monitored buildings is 9.7%; the overall rate is 11.2%, down two/tenths of a percentage point from third-quarter 2003.
Rents, which have slowly declined over most of 2003, dropped further in the fourth quarter by 11 cents per sf to a current $4.65 per sf, triple net. The good news, says Advantis research director Lisa M. DeVore, is that rents "are expected to stabilize and rebound by mid-year 2004."
More good news comes in the net absorption column. "While still in negative territory, net absorption rebounded significantly during the fourth quarter by 473,963 sf to a current positive 17,864 sf," DeVore says.
Good news also came in vacancy rate declines and lower sublet space numbers in the 41.5-million-sf South Orlando market which comprises 56% of the total industrial real estate inventory. The direct vacancy rate is 9.3%; the overall level, 11.3%. Sublet vacancies total 836,956 sf.
On the speculative development front, there is minimum activity other than small bay product development, largely by local developers George D. Livingston Jr., Geof Longstaff and Howard Schieferdecker. The only large industrial product to surface in December was Crownpointe Distribution Center, the 203,125-sf cross-dock distribution building developed by Minneapolis-based Opus South Corp.
More new construction is on the way, however. East Group Properties has purchased a 70-acre tract in Orlando Central Park where the Jackson, MS-based developer plans to break ground this quarter on SouthRidge, a 750,000-sf business park that will include about 10 buildings near the Beeline Expressway and John Young Parkway in south Orlando.
Among the larger sales in 2003 were the 404,000-sf Crownpointe I and II in the southwest submarket selling for $20.6 million, or $50.87 per sf, to TR Crownpointe Corp.; the 98,725-sf Southwest Corporate Center in the Airport/Southeast submarket selling for $9.3 million, or $94.20 per sf, to ATMF Realty & Equity; and Lake Mary Business Center, a 120,000-sf park in the Longwood/Lake Mary/Sanford submarket, selling for $6.9 million, or $57.50 per sf, to Lake Mary Business Center LLC.
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