Tight Supply Places Upward Pressure on Asking Rates
The Orlando metro area unemployment rate hit 3.2% falling 330 basis points (bps) year-over- year (YOY), on the addition of 83,130 jobs, for an impressive job growth rate of 6.3%. Sectors that had the most impact on the industrial market included a 6.5% year-over-year (YOY) increase in trade and transportation of 8.6%, a manufacturing increase of 3.2% and growth in warehousing jobs rose 13.8%. The thriving economy continued to vitalize the Central Florida industrial market as activity in development and absorption remained robust, including over 900,000 square feet (sq. ft.) of new industrial product delivered during the first quarter and 4.2M sq. ft. under construction. Due to the ongoing development activity remaining elevated in the core areas of Orlando, the availability for viable industrial land remained low, causing developers to seek sites outside the Orlando core market.
As a result, land costs remained elevated and increasing, ranging from $250K - to $500K+ per acre.