Orlando Industrial Market Report

Strong demographic tailwinds tempered by near-term market imbalances. Orlando’s population is expected to maintain its top-two growth ranking among major U.S. markets for a fourth consecutive year in 2025, supporting long-term expansion in logistics- and distribution-related demand. That said, industrial properties have been contending with rising vacancy since 2022. Much of this pressure is stemming from heightened new supply, as total inventory has grown nearly 9 percent in that time frame. Last year’s decline in net absorption, driven by slow lease-up of large-scale facilities, also played a role. Looking forward, a tapering construction pipeline in 2025 may relieve some of the pressure on the metro’s fundamentals, though preliminary leasing activity in the second quarter is still showing signs of weakness. Aside from Ryder Logistics’ 1.2 million-square-foot distribution facility lease starting in November, demand continues to center on small-bay tenants, particularly in submarkets surrounding Orlando International Airport.