Orlando Industrial Market Report

Long-run factors highlight metro, despite temporary headwinds. After noting impressive performance in the immediate aftermath of the pandemic, Orlando saw a pullback in demand for industrial space last year as supply additions began to outpace net absorption. This situation is likely to continue through 2024 as more than 50 percent of space in the 4.4 million- square-foot active pipeline remains unaccounted for as of March. Despite these temporary setbacks, the market notes solid underlying demand factors that will backstop vacancy in the long run. Orlando is one of the fastest-growing metros by population nationwide, thanks to consistently robust in-migration. More than 170,000 residents are expected to arrive in the metro on net before the end of 2028, the highest such total observed along the Eastern Seaboard. A steadily growing consumer base will foster demand for last-mile delivery operations across the metro, particularly in South Orange County, where more than 5,200 multifamily units were underway as of early 2024.