Orlando’s industrial market continues to maintain strong market fundamentals. Despite leasing activity temporarily softening at the midway point of 2023 compared to the end of second-quarter 2022, exceptionally low vacancy rates persist, putting upward pressure on asking rental rates and further strengthening developer confidence in the market. With its strategic locational advantages and diverse tenant mix, the sector is well-positioned for future growth. According to Florida Commerce, Orlando’s unemployment rate is 2.6 percent, well below the national rate of 3.6 percent. Labor shortages remain, as jobs increased by 5,300 in the industrial-using sector and 6,200 in trade, transportation, and utilities. At the same time, Central Florida’s population growth — along with the state’s business-friendly conditions, from no state income tax to relative affordability — consistently spurs demand for e-commerce logistics and warehousing throughout the region. Asking rates surge Year-to-date industrial leasing volume in Orlando has been 4.4 million square feet, 2.4 million square feet of which was in the second quarter. Total vacancy stood at 3.5 percent in the second quarter, significantly lower than the national vacancy rate of 5.4 percent. The average asking rate for industrial properties in Orlando was $10.77 triple-net per square foot, reflecting a 5.4 percent …
