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Short-Term Industrial Leases Are New Norm

ORLANDO-Entertainment Retail will take 50,000 square feet near the city's airport.

By Carl Cronan | Updated on September 07, 2009

ORLANDO-Industrial tenants prefer short-term leases at below-market rents lately, according to locally based Southern Commercial Real Estate Advisors LLC. The company recently signed Entertainment Retail Enterprises LLC, a specialty advertising production house, to a three-year, 50,000-square-foot lease at Airport Distribution Center IV.

Moses Salcido, a principal with Southern Commercial, puts the value of the lease at $450,000, or rougly $3 per square foot annually, with no tenant improvement allowance. He says Entertainment Retail, which makes promotional items for corporate clients, sought to consolidate two locations into a single building near Orlando International Airport.

“This is a unique building that has probably a larger block of space than is normally available in that submarket,” Salcido tells GlobeSt.com. He adds that the tenant preferred locating in another part of Orlando but the deal for the building at 2437 E. Landstreet Road, was too good to pass up.

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