Orlando Industrial Market Report
2023 Investment Forecast
Warehouse Space Demand Supports Supply Additions;
Investors Target Interstate-Adjacent Properties
In-migration and tourism stimulate retail spending and industrial needs. An inflow of new residents, companies expanding in the market and its role as a middle-Florida logistics hub all warrant Orlando’s substantial industrial pipeline. Despite this construction activity, vacancy will hold near last year’s record low as these dynamics support a 14th straight year of positive absorption. Specifically, Orlando is slated to record the nation’s fourth-fastest pace of population expansion this year, much of which stems from notable in-migration. Continued movement into the metro will facilitate demand for last-mile warehouse and distribution space used to store household items and necessity goods. The market’s sturdy tourism backbone will also drive demand for this space as local retail sales are highly dependent on spending by domestic and international travelers. Furthermore, Orlando’s central location and proximity to major interstates will preserve the metro’s standing as a convenient thoroughfare for online retailers.