The overall vacancy rate has dropped eight-tenths of a percentage point since the first quarter to 10.7% and net absorption of 1.8 million sf is more than double the first period's volume. Helping pad the net absorption number was the 565,927-sf lease signed by locally based Leisure Bay at the former Recoton plant in suburban Lake Mary, a deal which accounted for 31% of all net absorption so far this year.

"A quick glance at Orlando's mid-year industrial statistics confirms what has been anticipated for several quarters--the market seems to finally have turned the corner," says Advantis research director Lisa M. DeVore.

On the rental side, DeVore notes that "while the direct weighted average rental rate has in fact risen nine cents per sf since the end of the first quarter, that is largely a direct result of strong leasing activity in the bulk distribution sector." She says "a decrease in bulk availability inevitably puts upward pressure on the average rate, so it should not be assumed that rates have yet begun to rise."