Although 11.8% vacant, the inventory of flex, warehouse and distribution space posted positive net absorption of 808,668 sf in the first quarter. The 4,000-acre Orlando Central Park submarket accounted for 53% of the total absorption.
Lisa M. DeVore, research director at Advantis, calls the net absorption performance "significant" when compared to activity in previous periods. For example, in fourth quarter 2003, about 500,000 sf was leased on a net basis; 100,000 sf in third quarter 2003; 500,000 sf in second quarter; and 800,000 sf in first quarter 2003.
The first quarter's activity this year was a new ball game compared to a negative 900,000 sf the market logged in fourth quarter 2002. The vacancy number, however, was up in first quarter versus fourth quarter 2003--11.8% against 10.5%. The Advantis survey monitored 1,012 buildings.
Average asking base rent among all industrial categories is $4.84 per sf. Flex space is averaging $8.71 per sf. Bulk, office/warehouse and manufacturing space is going for an average $4.03 per sf. Much of the subleased space falls in the bulk, office/warehouse and manufacturing sector where 893,314 sf is available. Flex subleased space totals 143,989 sf.
On the investment sales side, interest among buyers "continues at strong levels," even though only four deals were completed in the first quarter, DeVore says.
Ashley Capital Inc. picked the biggest plum, buying the vacant 754,927-sf former Recoton Corp. manufacturing facility in the Longwood/Lake Mary corridor for $10.8 million, or $14.24 per sf--at least $50 per sf below replacement cost, area construction industry estimators tell GlobeSt.com.
In the other three deals, All-American Warehouse LLC paid $3.6 million, or $39.19 per sf, for the 91,872-sf Silver Star Road submarket building at 6373 All American Blvd.; Strang Communications paid $2.5 million, or $42.53 per sf, for a 57,600-sf property at 1051 Sand Pond Rd. in the Longwood/Lake Mary submarket; and AGS Exposition Services Inc. paid $2 million, or $42.40 per sf, for a 47,166-sf structure at 4559--34th St. in the 33-Street submarket.
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