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Market Report

Orlando Industrial Market Report

Midyear 2023

Demand for Small Floor Plans Sustained by Strong
In-Migration, Aiding Orlando’s Industrial Sector

Development pipeline misaligned with current demand. The vacancy rate in Orlando rose during the first quarter from the unsustainable lows achieved in the last two years. While net absorption will return to positive territory by year-end after a dip into the red in early 2023, vacancy will still inch up. The metrowide rate will, however, remain well below the two-decade average of 7.6 percent. Vacancy pressure is largely due to a significant number of speculative projects, many of which have floor plans over 100,000 square feet. In the first half of the year, leasing was concentrated in spaces smaller than 50,000 square feet. Developments with smaller floor plans are likely to continue drawing tenants, limiting the impact that projects of this scope have on metro vacancy. Larger facilities may face greater leasing challenges, elevating the metro rate near-term. 

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