WINTER PARK, FL--Orlando’s bulk warehouse leasing market took a plunge during the fourth quarter of 2008, reports Greg Rebman, SIOR, CCIM (top right photo) vice president, Rebman Properties Inc.There was 205,428 square feet of negative net absorption for the period in the 136 surveyed buildings, the worst showing since the second quarter of 2003.
There were many downsizings, bankruptcies and other exits from the market following the collapse of financial markets in the third quarter.
The largest leases for the fourth quarter were as follows:
Disney leased 67,000 s.f. at Lincoln International Corporate Park, Building C;
Frito-Lay leased 56,875 s.f. at Center of Commerce, Building 909; and
G & K Services leased 14,957 s.f. at Crownpointe V.
Supply
The vacancy rate rose substantially from 13.76% at end of the third quarter to 16.75% at the end of 2008, the highest vacancy rate since the fourth quarter of 1993.
The largest leases for the fourth quarter were as follows:
Disney leased 67,000 s.f. at Lincoln International Corporate Park, Building C;
Frito-Lay leased 56,875 s.f. at Center of Commerce, Building 909; and
G & K Services leased 14,957 s.f. at Crownpointe V.
Supply
The vacancy rate rose substantially from 13.76% at end of the third quarter to 16.75% at the end of 2008, the highest vacancy rate since the fourth quarter of 1993.
There were three buildings added to the survey in the period, which exacerbated the otherwise dismal fourth quarter.
The following buildings were added to the survey: Lincoln International Corporate Park, Building A, a 92,616 square foot, rear-load facility; and Building C, a 141,660 square foot, rear-load facility; both in International Corporate Park in East Orlando.
Also added to the survey was the 118,500 square foot, front-load building at 2216 Directors Row in Orlando Central Park. This building was previously an owner-occupied facility, but was purchased by Liberty Property Trust for lease to industrial tenants.
Rental Rate
The average quoted rental rate for the 136 buildings surveyed is $4.62 psf triple net, down from $4.67 psf at the end of the third quarter.
Construction
Beltway Distribution is nearing completion at the intersection of Lee Vista Boulevard and Highway 417 (The Greenway).
Rental Rate
The average quoted rental rate for the 136 buildings surveyed is $4.62 psf triple net, down from $4.67 psf at the end of the third quarter.
Construction
Beltway Distribution is nearing completion at the intersection of Lee Vista Boulevard and Highway 417 (The Greenway).
Slated for completion in January 2009, Building #100 is a 141,810 s.f., rear-load building; Building #200 is a 145,540 s.f., rear-load building; and Building #400 is a 378,600 square foot, cross-dock building.
Forecast
Orlando industrial brokers polled for this survey expressed that they expect 2009 to be “challenging.”
The market is expected to get worse before it gets better.
Forecast
Orlando industrial brokers polled for this survey expressed that they expect 2009 to be “challenging.”
The market is expected to get worse before it gets better.
More downsizing, consolidations, bankruptcies and increased space marketed for sublease are expected through 2009.
While net absorption is expected to be only slightly negative, the vacancy rates are expected to continue to increase throughout the year.
CONTACT:
Lynn G. Bailey, Office Manager, Rebman Properties, Inc., 1014 W. Fairbanks Ave., Winter Park, FL 32789 USA. Tel: 407.875.800. Fax: 407.875.8004.
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