The third-quarter market report by the Winter Park-based firm shows condominium industrial sales posted positive absorption of 36,849 SFORLANDO, FL--This survey covers 9,007,669 square feet of service center/flex space in 106 locations south of the 408 Expressway in Orlando, Florida.
Lyle N. Nelsen (top right photo), Rebman's corporate and industrial specialist, notes the overall results of sales and leasing activity in the third quarter continues to pause while the economy turns around.
The negative absorption this quarter of 71,627 square feet and a 15.22% vacancy are strong indicators of this pause in the economy. The year to date negative absorption of 69,800 is a distinct slow down in leasing and sales activity.The number of third quarter leases over 5,000 square feet were less than normal for this market. They included:
--Oceaneering Intern. 20,000 sf, Southridge II, Leasing Agent Mike Borling-EastGroup.
--Kranson Industries, 9,600 sf, Beachline Comm. Center, Agent Todd Watson of Liberty Properties.
--Serv Pro, 8,000 sf, Sunport Comm. Center, Quentin Caruso of Realty Capital.
Surprisingly, condominium sales had a positive absorption of 36,849 square feet, reducing the condo vacancy rate from 14.10% to 11.08%.
Surprisingly, condominium sales had a positive absorption of 36,849 square feet, reducing the condo vacancy rate from 14.10% to 11.08%.
Asking prices have dropped to an average range of $100 to $110 per square foot which produced a number of small space sales.
Summarizing this service center/flex space market, it is in transition and will turn around when there is stability in the financial sector.
Summarizing this service center/flex space market, it is in transition and will turn around when there is stability in the financial sector.
There have been only three years when the vacancy rate was higher than the current 15.22% -- 1991 (25.7%); 1992 (21.85%) and 1994 (15.95%).
Rental rates along the core area of Sandlake Road and South Orange Blossom Trail are holding. Asking rates have been reduced in the outlining area along the Beltway.
There is very little movement of tenants. Most tenants are remaining with a lot of downsizing.
Deals are predominantly in the smaller spaces and with shor
t terms – 1 to 3 years. There is a trend of smaller tenants leaving without notice.
Finally, when brokers are in a competitive situation, free rent is the main tool they use to get the deal.
The forecast – more of the same through this year and into 2009 until the financial markets open the gates. In the meantime, this market has an abundance of flex space in all areas of the south Orlando – ready for occupancy!
This survey has been produced every quarter since 1986 with a personal call to each broker/property manager in gathering this information.
CONTACTS:
t terms – 1 to 3 years. There is a trend of smaller tenants leaving without notice.Finally, when brokers are in a competitive situation, free rent is the main tool they use to get the deal.
The forecast – more of the same through this year and into 2009 until the financial markets open the gates. In the meantime, this market has an abundance of flex space in all areas of the south Orlando – ready for occupancy!
This survey has been produced every quarter since 1986 with a personal call to each broker/property manager in gathering this information.
CONTACTS:
Lynn G. Bailey, Rebman Properties Inc., PH 407 875 8001. FX 407 875 8004. lynn@rebmanproperties.com
Lyle N. Nelsen, corporate/industrial specialist, Rebman Properties Inc., lyle@rebmanproperties.com
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