ORLANDO, FL--“By many objective measures, the current economy is the worst it has been in the past 25 years,” according to industry veteran Jeff York, (top right photo) President of York Property Company.
Essentially, we have had 6 straight quarters of negative absorption, increasing vacancies, and decreasing rental rates. Corporate downsizings, unemployment, and facility consolidations and closures have steadily eroded the industrial market.
The question on nearly everyone’s mind is “when will we start to see a turn in the market?”….and not just scattered deals here or there, but quantifiable measures that we are on the rebound, headed back toward a stable market.
York Property Company specializes in negotiating lease transactions for “Big Box” bulk distribution tenants. The company tracks the largest blocks of space within dock high, high bay warehouse facilities….spaces which are in excess of 100,000 Square Feet.
(Orlando Central Park, middle right photo)
At present, there are 32 such facilities in metro Orlando, (within 35 miles of downtown Orlando) totaling 6,610,432 square feet of available space.
Quoted (asking) rental rates are predominantly in the $3.50 to $4.95 per square foot range, on an industrial net basis, with final, negotiated rates generally 20% to 25% below the asking rate.
“With so few large deals being done year to date, it is a challenge trying to peg what defines a fair market deal,” says York.
“The bottom line is that there is a glut of space on the market, and any large tenant even considering a potential move is in a position to take advantage of once in a generation market dynamics. Landlords will be competing very aggressively over the next year for a limited pool of large corporate users.”Long term demographics unquestionably support the viability of Central Florida as an attractive location for large warehouse distributors, but it is going to take some time before supply and demand are restored to a healthy balance.
For a complete copy of the Big Box Survey, please contact:
Jeff York
York Property Company
2180 N. Park Ave., Suite 220
Winter Park, FL 32789
Office 407.622.2558
Cell 321.663.4535
E Mail jyork@yorkpropertycompany.com
Web http://www.yorkpropertycompany.com/
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