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Q3 2021 Central Florida Industrial Market Report

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Maintaining Consistent Positive Performance

The metro Orlando industrial market maintained consistent positive performance, as the fundamentals defied the usual Q3 slowdowns. Key indicators pointed towards robust growth in construction and absorption. At the end of the quarter, only 4.5% of the region’s industrial space was vacant, the lowest since 2018, despite the almost 9M square feet of new construction added to the market during that period. The steady delivery of industrial buildings, along with high demand, continued to drive up asking rental rates, which increased 21.3% in the last three years, now ranging between $6.50-$8.45 per square foot triple net. Some developers that sought to capitalize on the healthy industrial market in some cases were priced out due to the high cost of land. The resulting demand caused continuous price hikes with land prices ranging between $4.00 - $6.50 per sq. ft., an increase of about 50% compared to 2018. Industrial sales were driven by the surge in institutional buyers during the first three quarters of the year, up over 180% from last year when investors paused due to the market’s volatility because of the pandemic. Year-to-date investment sales were also 43.6% higher than the same period in 2018. The increase in volume resulted from investors seeking commercial property types not negatively impacted by the pandemic.

 


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Q3 2021 Central Florida Industrial Market Report

Download Report