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Central FL Industrial Market Stays Active

ORLANDO-Landlords attempt to hold the line on vacancy and rents with better concessions.

By Carl Cronan | Updated on June 29, 2009

ORLANDO-Industrial building owners in Central Florida are enticing tenants by offering concessions such as free rent and unprecedented first-year lease rates, according to a midyear report by CB Richard Ellis. The incentives may already be working, with several large leases signed during the second quarter.

Average asking rents in the Orlando industrial market fell slightly in the second quarter, to $6.49 per square foot triple net, although vacancy rose at least two percentage points to 14.3%. Space absorption for the quarter totaled negative 1.5 million square feet, adding to a first-quarter loss of 460,000 square feet.

Part of the problem is that Orlando’s metropolitan unemployment rate topped 10% in May, doubling what it was a year earlier. Manufacturing jobs have taken a huge hit, though distribution space accounts for the vast majority of the area’s negative absorption, CBRE figures show.

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