Orlando Industrial Investment Forecast
Surging Population Underpins Demand,
Stimulating Development and Investment Activity in Orlando
Availability falls to record low. Robust population growth and Orlando's central positioning on the I-4 Corridor teamed with the ongoing rise of e-commerce is luring prospective tenants and developers to the market. Industrial firms absorbed nearly 5 million square feet in 2021 compressing metrowide vacancy to 3.4 percent. Recent demand was widespread with six of the metro's seven submarkets experiencing vacancy compression and double-digit rent growth over the past year. Users' strong appetites for modern space continue to fuel new development in Orlando with roughly 3.3 million square feet expected to deliver this year. The bulk of completions are concentrated in Northwest and Southeast Orange County with only 30 percent of the space accounted for entering 2022. Despite the uptick in speculative construction net absorption is expected to outpace deliveries resulting in the third consecutive year of annual vacancy compression. Availability will fall to 3 percent by year-end the lowest rate among all major Florida metros.