Industrial Leasing Activity Up, Land in Short Supply

ORLANDO-The South Orlando submarket, with a total inventory of 25 million sf and net absorption of 775,950 sf in the second quarter, is leading the metro area’s 63-million-sf industrial real estate market out of a recessionary period but land for new development remains scarce, according to a new mid-year market analysis by the local office of Advantis Real Estate Services Co.

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.