ORLANDO, FL--Greg Rebman, (right top photo), vice president and corporate/industrial specialist of Winter Park, FL-based Rebman Properties Inc., reports Orlando’s bulk warehouse leasing market was quiet in the first quarter of the year for the third consecutive quarter, although there were two large subleases signed and a number of large tenants shopping the market.Demand
There was 111,876 square feet of net absorption in the 132 surveyed buildings. In spite of the flatness of the market, the net absorption was at an average quarterly level because of the fact that the market was relatively inactive both in entrances and exits.
The good news is the increased number of prospective tenants with requirements in excess of 100,000 square feet who are currently shopping. The trick will be to convert this activity to signed leases in this “wait-and-see” market. 
The largest leases for the first quarter were as follows:
U.S.
Postal Service subleased 188,468 s.f. at 2000 Landstreet Road;
ROL Manufacturing subleased 88,000 s.f. at Sunbelt Distribution Center;
Prologix leased 75,900 s.f. at OCC #600;
Dal-Tile leased 62,377 s.f. at Cypress Park East III; and
Dayton Superior leased 44,600 s.f. at Liberty Park @ AIPO, Building B.
Supply
The vacancy rate rose from 11.71% at the end of 2007 to 12.75% at end of the first quarter. Two new buildings were added to the survey: Northwest Distribution Center, Building A, a 117,048 square foot, rear-load facility; and Northwest Distribution Center, Building B, a 200,23
2 square foot, cross-dock. Vacancy rates have risen steadily since the second quarter of 2004, when they were at a low of 5.37%.
Rental Rate
The average quoted rental rate for the 132 buildings surveyed is $4.66 psf triple net, virtually unchanged from the average of $4.65 psf triple net at year end, and $4.63 psf triple net at the end of the third quarter of 2007.
Construction
Beachline Corporate Center, Building 100 is under construction at 15000 Aerospace Drive in International Corporate Park. The 360,000 square foot, cross-dock facility is slated for completion in June.
Beltway Distribution has just broken ground on three buildings slated for completion in November. Building #100 is a 141,810 square foot, rear-load facility; Building #200 is a 145,540 square foot, rear-load; and Building #400 is a 378,600 square foot, cross-dock facility.
Forecast
Industrial brokers responding to the survey generally expressed that the market is flat, but were hopeful for the coming quarters because of the increase in large tenant prospects circulating the market. Brokers have varied explanations for the increase, from “a market anomaly” to the fact that in a contracting market many large tenants consider centralizing their supply chain, thereby consolidating their warehouse facilities.
Tenant prospects are continuing in their “wait-and-see” mode and many existing tenants are asking for short renewal terms, e.g. 12-month renewals.
Overall, it is expected that leasing in Orlando will remain flat through the end of the year before resuming the strong absorption seen in 2006 and the first half of 2007.
CONTACT:
Lynn G. Bailey
The largest leases for the first quarter were as follows:
U.S.
Postal Service subleased 188,468 s.f. at 2000 Landstreet Road;ROL Manufacturing subleased 88,000 s.f. at Sunbelt Distribution Center;
Prologix leased 75,900 s.f. at OCC #600;
Dal-Tile leased 62,377 s.f. at Cypress Park East III; and
Dayton Superior leased 44,600 s.f. at Liberty Park @ AIPO, Building B.
Supply
The vacancy rate rose from 11.71% at the end of 2007 to 12.75% at end of the first quarter. Two new buildings were added to the survey: Northwest Distribution Center, Building A, a 117,048 square foot, rear-load facility; and Northwest Distribution Center, Building B, a 200,23
2 square foot, cross-dock. Vacancy rates have risen steadily since the second quarter of 2004, when they were at a low of 5.37%.Rental Rate
The average quoted rental rate for the 132 buildings surveyed is $4.66 psf triple net, virtually unchanged from the average of $4.65 psf triple net at year end, and $4.63 psf triple net at the end of the third quarter of 2007.
Construction
Beachline Corporate Center, Building 100 is under construction at 15000 Aerospace Drive in International Corporate Park. The 360,000 square foot, cross-dock facility is slated for completion in June.
Beltway Distribution has just broken ground on three buildings slated for completion in November. Building #100 is a 141,810 square foot, rear-load facility; Building #200 is a 145,540 square foot, rear-load; and Building #400 is a 378,600 square foot, cross-dock facility.
Forecast
Industrial brokers responding to the survey generally expressed that the market is flat, but were hopeful for the coming quarters because of the increase in large tenant prospects circulating the market. Brokers have varied explanations for the increase, from “a market anomaly” to the fact that in a contracting market many large tenants consider centralizing their supply chain, thereby consolidating their warehouse facilities.
Tenant prospects are continuing in their “wait-and-see” mode and many existing tenants are asking for short renewal terms, e.g. 12-month renewals.
Overall, it is expected that leasing in Orlando will remain flat through the end of the year before resuming the strong absorption seen in 2006 and the first half of 2007.
CONTACT:
Lynn G. Bailey
Rebman Properties, Inc.
A CORFAC International Member
1014 W. Fairbanks Avenue
1014 W. Fairbanks Avenue
Winter Park, FL 32789 USA
Tel: 407.875.8001
Fax: 407.875.8004
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