Vacancy at the end of 2008 was 16.75%, already the highest rate since 1993. WINTER PARK, FL--Orlando’s bulk warehouse leasing market plunged during the first quarter of 2009 to its lowest occupancy rate since Rebman Properties began its survey of the bulk market in 1989, reports Rebman vice president Greg Rebman (top right photo).
In its first quarter 2009 bulk warehouse survey, the Winter Park, FL-based industrial real estate firm found:
Demand 
The vacancy rate in the 139 buildings surveyed – comprised of institutionally-owned warehouses held for lease to industrial tenants – is now at an astounding 23.46%.
There was 623,051 square feet of negative absorption in the surveyed buildings, making it one of the worst quarters in the past 20 years and the worst since the early 90’s.
Downsizings, bankruptcies and other exits from the market continue as the unemployment rate and other economic variables continue to flounder or worsen.
The only significant lease in the first quarter was the lease of 40,100 square feet by Customized Delivery Services at Crossroads 2.
Supply
There were three buildings added to the survey in the period, which exacerbated the otherwise dismal first quarter. 
This is similar to the fourth quarter of 2008, when three buildings were added in a quarter with negative absorption.
The following buildings were added to the survey: Beltway Commerce Center #100, a 141,810 s.f., rear-load facility; Beltway Commerce Center #200, a 145,540 s.f., rear-load facility; and Beltway Commerce Center #400, a 378,601 s.f., cross-dock facility.
These three distribution facilities are located at the intersection of Lee Vista Boulevard and the Greeneway, SR 417.
Rental Rate
The average quoted rental rate for the 139 buildings surveyed is $4.57 psf triple net, down from $4.62 psf at the end of the third quarter. 
Construction
Most of the construction which had been put in motion prior to the economic downturn in the third quarter of 2008 has been completed now.
Two new warehouses are slated for completion in July: Lee Vista Business Center, Building D, a 106,500 s.f., rear-load facility; and Lee Vista Business Center, Building E, a 226,800 s.f., rear-load facility.
Forecast
Orlando industrial brokers polled for this survey expressed that market activity has been sparse but were of the opinion that the exits from the market may have peaked over the past two quarters.
Nevertheless, it is expected that the remainder of 2009 will be slow as tenants and prospective purchasers await the “bottom.”
However, it is expected that when the public broadly perceives that we are at or near the bottom, that industrial companies will look to lock in bargains with warehouse purchases and leases of warehouse space.
Contact:
Lynn G. Bailey, Office Manager, Rebman Properties, Inc. 1014 W. Fairbanks Ave., Winter Park, FL 32789 USA. Tel: 407.875.8001. Fax: 407.875.8004. lynn@rebmanproperties.com
http://www.rebmanproperties.com/
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