Southern Commercial's 2009 Fourth Quarter Industrial Market Report for Central Florida

ORLANDO, FL--In a still uncertain economy, the commercial real estate market continues to be unstable.

Recently, the Bureau of Labor Statistics has reported the unemployment rate for the state of Florida is 11.5%.

 A significant increase from the 7.2% fi gure reported just one year earlier. In addition, Florida had the largest loss of jobs (16,700) in one month’s time during the month of November 2009. Many economists won’t predict a stabilization in commercial real estate activity until the job market is constant again, which has
not happened yet.

At year end 2009 both Seminole and Orange Counties had a total of 14.5 million square feet of direct vacant space out of the 86.5 million square feet. Whereas, at the end of 2008 a total of 9.6 million square feet of direct vacant space was reported. The fourth quarter absorption is (747,295) square feet, with a year to date absorption just under (4.7 million) square feet.

Asking rental rates continue to decrease, but only by pennies per square foot quarter by quarter, however these pennies add up if you are an owner or broker in today’s market. Industrial building sales only totaled $17 million at an average of $50.21 psf, which is down from the previous quarter’s sales of $58 million, but up from the second quarter’s mere $7 million.

The construction pipeline remains nonexistent, with only Lee Vista Business Center delivering in the fourth quarter, adding 333,330 square feet to the Airport/Southeast submarket.

The market continues to face the same challenges as the previous three quarters in 2009: the fi ght to obtain financing, and the decisions to accept or reject the $1.00psf deals. Time is the only solution to these challenges, but the question is how much time?

As we conclude 2009, the commercial real estate market closes one of its worst years in Central Florida’s history.
 
For a complete copy of the report, please contact:
Celeste MacKenzie, Production Assistant, Southern Commercial Real Estate Advisors, LLC, 20 N. Orange Ave., Suite 605, Orlando, FL 32801, 321.281.8503 Direct, 321.281.8519 Fax http://www.southerncommercialre.com/