ORLANDO-As 2011 draws to a close, Orlando’s industrial market is seeing vital signs improve. Hilldrup United Van Lines' 60,000-square-foot lease at Cypress Park East is the latest example of the industrial musical chairs in O-Town.
CBRE senior vice president David Murphy represented Hilldrup in the transaction, joined by Rich McDaniel of CBRE’s Fredericksburg affiliate office. Wilson McDowel and Matt Sullivan of Colliers International represented the landlord.
"Hilldrup’s previous location at 2300 Principal Row was an excellent building but did not have 30-foot clear height that the new location provides," Murphy tells GlobeSt.com. He says the moving and storage company played the same card that many other industrial tenants brought to the negotiating table in 2011: it’s a tenant’s market.
Hilldrup essentially took the flight to quality. The company currently occupies 60,000 square feet at a nearby facility built in 1989. Built in 2005, the location at Cypress Park East offers newer industrial construction features and allows greater space utilization, ample trailer storage and early suppression fast response fire protection. Hilldrup will take occupancy in January 2012.
"With a highly competitive environment among landlords and Hilldrup’s commitment to a five-year lease term, our client was able to relocate to a newer, state-of-the-art facility with a significant reduction in rent compared to their present location," Murphy says. The rent savings was in excess of 10%, he added.
New and expansion leasing activity totaled 1.5 million square feet in the third quarter, surpassing the one-million-square-foot quarterly average established in the first half of 2011, according to Cushman & Wakefield. The Orlando industrial market documented overall absorption of positive 589,714 square feet in the third quarter, its highest quarterly absorption total since 2007.
"We are seeing conditions stabilize in the Orlando industrial market," Murphy confirms. "The market has not yet swung back in favor of the landlord just yet, but the desperation landlords felt just six months ago has given way to quiet confidence in the future of the market."
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