Orlando’s industrial market combats trends with impressive growth and strong tenant demand

Orlando’s industrial market defied the odds in 2023, recording an annual 6.7 million square feet of new deliveries—the highest figure in eight years—despite a broader trend of decreased development activity. Notably, the surge was underscored by three building deliveries at Apopka 429, a 2.5-million-square-foot development in the Northwest market.
The overall vacancy rate experienced a notable uptick of 180 basis points year over year, reaching 5% by the end of 2023, yet remaining lower than the pre-pandemic average of 5.4% recorded from 2016 to 2019. New deliveries created the spike in vacancy, but it is expected to be short-lived as tenants build out their spaces and take occupancy in the first half of 2024.
Strong tenant demand in Orlando is driving up asking rates, with net absorption remaining positive and rents increasing to $9.99 per square foot NNN, up 5% year over year.

February 27, 2024

US-FL-ORL Orlando