// INDUSTRIAL MARKET OVERVIEW
// U.S. OVERALL INDUSTRIAL CLOCK | Q3 2015
Dallas / Fort Worth, Oakland / East Bay,
San Antonio, Silicon Valley / South Bay
Central New Jersey, Central Valley (CA),
Inland Empire, Los Angeles, Sacramento
Denver, Hampton Roads, Houston, Minneapolis / St. Paul,
Northern New Jersey, Philadelphia / Harrisburg, Portland, Salt Lake City
Peaking
market
Falling
market
Chicago, North Bay (CA), Richmond, San Diego
Atlanta, Baltimore, Indianapolis, Long Island, MIAMI-DADE, Nashville,
Orange County(CA), Reno, Seattle, St. Louis, UNITED STATES
Charlotte, Columbus, Kansas City, Memphis,
TAMPA BAY, Washington DC
Boston, Cincinnati, Cleveland, Detroit, Greensboro / Winston-Salem,
Las Vegas Milwaukee, ORLANDO, Phoenix, Pittsburgh
Rising
market
Bottoming
market
BROWARD COUNTY / FORT LAUDERDALE, JACKSONVILLE
PALM BEACH
// INDUSTRIAL MARKET OVERVIEW
Similar to the office market, the Orlando industrial market has fully
recovered from the recession and has reached peak levels in terms of
vacancy amidst robust demand. As the development pipeline for housing
and retail heats up, as well as record level tourism, demand is primarily
being driven by Orlando’s traditional economic staples. Tenant demand
has been heavily comprised of firms catering to hotel and convention
materials, as well as home/building supply companies. Additionally, local
consumption has been on the rise, leading to demand from retailers and
wholesalers, particularly for household products and apparel.
With total vacancy at a seven year low (8.0 percent), as well as
surging rental rates (asking rents are up 13.0 percent year-over-year),
developers are identifying opportunities for construction to capture this
demand. Since mid-2014, an additional 2.5 million square feet has been
added to the market, with another 800,000 square feet currently under
construction – much of which has been speculative development. In
response to the strengthening market, investors have increased market
share and interested in Orlando’s industrial market, with nearly $90
ORLANDO PULSE // 26
million in property trades over the last seven quarters. This year is on
pace to surpass the 2014 total and be the most active year for industrial
property trades since 2009.
Another driving force for the Orlando industrial market – and Central
Florida overall – is the importance of e-commerce, which will be a
contributing factor in the continued strengthening of the industrial market
going forward. As retailers shift to a delivery model of service, and in
particular same day delivery, Orlando’s central location within the third
most populous state in the US will continue to be a draw for e-commerce
companies such as Amazon, which recently constructed two distribution
facilities totaling 2.1 million square foot between Orlando and Tampa
to service the . The emergence of e-commerce as a major driving
force in the industrial market has also prompted the construction of the
Intermodal Logistics Center (ILC) in Winter Haven, which will allow for
the rapid delivery of goods flowing out of Orlando, from which 12.2 million
people can be serviced within a three hour drive.