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Market Report

Orlando Industrial Market Report

4Q 2021

Notable Vacancy Compression in Largest Submarkets Bolsters Orlando’s Near-Term Outlook

Metro exhibits strength as delivery wave approaches. Population growth and e-commerce expansion during the health crisis have elevated wholesalers’ and logistics firms’ storage requirements in Orlando. Recent leasing velocity reflects this. Prior to the second half of 2021, more than 1 million square feet of space was absorbed in each of the last four quarters, a record-setting streak. Strong absorption placed metro vacancy 60 basis points below its prior five-year average at the onset of July, with local availability also 30 basis points under the national mark. Conditions have tightened prior to a fourth quarter influx of speculative deliveries. Fortunately, near-term completions are dispersed with no submarket adding more than three properties.
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