Smaller Users Shaping Orlando Industrial

If you aren’t yet convinced of the demand for industrial space in Orlando, look at these leases. Avison Young just secured 22,500 square feet of leases in Orlando’s Triplex, a three-building office and warehouse portfolio located at 4653-4677 L.B. McLeod Road in the Southwest Orange County submarket.

Avison principal Lisa Bailey and senior vice president Lawson Dann secured four new leases totaling 43,594 over the past three months at Triplex on behalf of the asset’s ownership, FGHP Properties Limited Partnership. These deals demonstrate a trend toward smaller users ranging from 3,000 to 10,000 square feet dominating the local landscape.

“The impact of the economic recovery, fueled by small business growth and increases in consumer spending, can be seen in the tenant types signing leases at Triplex—event planner, fitness company, dance academy, and community organization,” Bailey tells GlobeSt.com. “Combined with the positive absorption coming from businesses benefiting from the uptick in construction spending and theme park growth in Orlando, quality space for smaller tenants is becoming more and more scarce and available dock high small space is virtually nonexistent in Southeast and Southwest Orange County.”

Southeast and Southwest Orlando are experiencing rapid positive absorption of industrial space. The Southwest Orange submarket had the greatest impact on the second quarter of 2015 with absorption of 340,387 square feet.

“Orlando’s average vacancy for industrial at 9.5%—down nearly a point since last year—is causing quality space for smaller tenants to become more scarce,” says Bailey.  “Southwest Orange County’s industrial vacancy is even lower at 9%, creating a competitive market for tenants seeking to move to higher quality space or expand post-recession.”

A new study by Forbes ranked Orlando as #4 metro in the country for highest forecasted employment growth. In line with this, the recent leases at Triplex include an established business in Central Florida experiencing growth and a new business venture. Party Guys signed a 13,500 square foot new lease. DGBEK Studios, a new hip-hop dance academy, signed a 9,000 square foot new lease.

“The Southwest Orange County submarket can attribute part of its occupancy uptick to the growth of the tourism industry and construction boom of late, as many of the tenants entering this market or expanding within are in auxiliary business lines,” says Dann. “Within the market, Triplex not only provides excellent distribution location in close proximity to Interstate 4, Kirkman Road, John Young Parkway, International Drive and the Florida Turnpike, but also access to a substantial residential base.”

A new study by Forbes ranked Orlando as the #4 Metro in America for the highest forecasted employment growth.