The park's owner, Dr. Phillips Inc., the largest private industrial property owner in the metro area, declined to disclose terms of the lease. But area brokers intimate with the Silver Star Road hub tell GlobeSt.com the lease was probably for a year at an estimated effective rent of $3.76 per sf. The building is at 1978-2006 Stanhome Way.
Advantis Real Estate Services Co. brokers Bo Bradford, Tom McFadden and Mindy Pierce negotiated for Dr. Phillips Inc. Dale G. Clemens of Clemens Commercial Realty in Orlando represented Windoor.
The current occupancy rate in the Silver Star Road submarket is 91.1% and the direct weighted average rental rate for industrial space is $4.71 per sf triple net, Advantis research director Lisa M. DeVore tells GlobeSt.com. The average rent for warehouse space is $4.42 per sf triple net.
In a separate study, ColliersArnold research director Bobby Palta notes Central Florida's 64-million-sf industrial market "had a rough 2003." Overall vacancies jumped to 17.6% from 15.4%. In the 12.6-million-sf Northwest Orange submarket, where the Silver Star Road sector is located, overall vacancy is 11.9%, the best performance of all the submarkets.
Yearend 2003 absorption was only 88,328 sf. But Palta thinks that number is "decent, because more than 231,747 sf was delivered to the market in seven buildings" last year. Total leasing activity was one million sf. "Overall lease rates declined in this submarket, partly due to the increase in vacancy," Palta says. No new construction is planned for 2004.
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