Orlando - Xceligent [PDF]

INDUSTRIAL MARKET REPORT

Orlando 2nd Quarter 2016 2016 Q2 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved

Table of Contents/ Methodology of Tracked Set Xceligent is a leading provider of verified commercial real estate information which assists real estate professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell, buy and develop commercial properties.

Table of Contents and Methodology/Map

2-3

Market Overview

4-5

Statistics by Market Vacancy Rates & Asking Rates

6 7-8

Leasing & Absorption

9

Industrial Advisory Board Members

10

Xceligent Team

11

The Orlando tracked set consists of an inventory of buildings considered to be competitive by the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for the market area. Inventory

The total square feet of all existing single-tenant, multi-tenant and owner-occupied industrial properties greater than 10,000 SF.

Total Available SF

All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or sublease space. Space can be available but not vacant, for example, if the landlord, or his agent, is marketing space that will be coming available at a future date because a tenant is planning to move.

Total Vacant SF

The total of all of the vacant square footage within a building, including both direct and sublease space.

Direct Vacant SF

The total of the vacant square footage in a building that is being marketed by an agent representing the landlord.

Sublease SF

Space that is offered for lease by a current tenant, or his agent, within a property. Whether the tenant is paying rent or not, the space is considered vacant only if it is unoccupied.

Net Absorption

The net change in physically occupied space from quarter to quarter, expressed in square feet.

2016 Q2 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved

2

Industrial Market Map


3

Orlando Industrial Overview

Overview 

The unemployment rate in the Orlando MSA was 4.0% in May 2016. This rate was 1.2 percentage points lower than the region's rate a year ago, of 5.2%.



At 7.0%, the regional vacancy rate is down 0.4 percentage points from the first quarter of 2016 and net absorption was recorded at positive 772,961 square feet.



The Airport South/Lake Nona submarket experienced the strongest leasing activity during the second quarter and the top lease transaction was Thyssen Krupp's new 79,300 square foot requirement at LeeVista Business Center Bldg F.



One notable sale transaction during the quarter was reported at Shader Industrial Park - 2515 Shader Rd, a 302,420 square foot building, and was purchased for $10,700,000.

# of Bldgs

Inventory (SF)

Total Available (SF)

Total Vacant (SF)

Total Vacancy Total Quarterly Net Rate (%) Absorption (SF)

YTD Total Net Absorption (SF)

Flex/R&D

735

22,790,369

2,695,467

2,284,832

10.0%

175,143

200,937

Warehouse - Distribution

727

64,740,889

7,108,931

5,740,393

8.9%

569,169

767,689

Light Industrial

1,583

33,920,568

1,680,378

1,248,368

3.7%

40,566

36,452

Manufacturing

106

8,939,784

282,316

193,916

2.2%

-3,600

31,350

73

6,331,310

159,030

110,530

1.7%

-8,317

-17,317

3,224

136,722,920

11,926,122

9,578,039

7.0%

772,961

1,019,111

# of Bldgs

Inventory (SF)

Bulk Warehouse Grand Total

Sum of Direct Available SF

Direct Vacant (SF)

Direct Vacancy Direct Quarterly Net Rate (%) Absorption (SF)

YTD Direct Net Absorption (SF)

Flex/R&D

735

22,790,369

2,670,120

2,265,985

9.9%

154,881

237,296


727

64,740,889

6,810,873

5,682,595

8.8%

561,969

554,399

Light Industrial

1,583

33,920,568

1,680,378

1,248,368

3.7%

40,566

36,452

Manufacturing

106

8,939,784

218,303

129,903

1.5%

-3,600

31,350

73

6,331,310

157,030

108,530

1.7%

-8,317

-17,317

3,224

136,722,920

11,536,704

9,435,381

6.9%

745,499

842,180

# of Bldgs

Inventory (SF)

Sublease Vacancy Rate (%)

Sublease Quarterly Absorption (SF)

YTD Sublease Net Absorption (SF)


Available Sublease (SF)

Sublease Vacant (SF)

Flex/R&D

735

22,790,369

25,347

18,847

0.1%

20,262

-36,359


727

64,740,889

298,058

57,798

0.1%

7,200

213,290

Light Industrial

1,583

33,920,568

-

-

0.0%

-

-

Manufacturing

106

8,939,784

64,013

64,013

0.7%

-

-

73

6,331,310

2,000

2,000

0.0%

-

-

3,224

136,722,920

389,418

142,658

0.1%

27,462

176,931



4

Orlando Industrial Overview

Historical Vacancy Rate & Net Absorption 1,200,000

9.0% 8.0%

1,000,000

7.0%

800,000

6.0% 5.0%

600,000

4.0%

400,000

3.0% 2.0%

200,000

1.0%

-

0.0% 2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

Historical Vacancy Rates by Use 12.0%

9.0%

6.0%

3.0%

0.0% 2015 Q2 Flex/R&D

2015 Q3

2015 Q4


Light Industrial

2016 Q1

2016 Q2

Manufacturing

Bulk Warehouse

Historical Net Absorption by Use 950,000 750,000 550,000 350,000

150,000 (50,000)

2015 Q2 Flex/R&D

2015 Q3 Warehouse - Distribution

2015 Q4 Light Industrial


2016 Q1 Manufacturing

2016 Q2

Bulk Warehouse

5

Statistics by Market

# of Bldgs

Inventory (SF)

Total Vacant (SF)

Sublease Vacant (SF)

Vacancy Rate (%)

Total Quarterly Absorption

YTD Total Net Absorption (SF)

Southeast Submarket

418

25,754,591

2,439,819

64,013

9.5%

-165,095

-95,707

Orlando Central Park

288

22,048,865

992,222

18,847

4.5%

463,421

651,346

Silver Star

521

20,002,819

1,082,906

59,798

5.4%

119,134

124,861

North Seminole

356

12,133,590

1,462,784

-

12.1%

223,074

248,701

Northwest Outlying

249

9,063,023

209,627

-

2.3%

-9

-10,388

Longwood / Altamonte

351

8,273,226

677,255

-

8.2%

-35,604

-60,109

Eastside University

244

7,853,902

540,566

-

6.9%

-30,421

-24,309

Kissimmee - St Cloud

175

7,266,740

212,446

-

2.9%

65,331

122,356

Downtown Orlando

266

7,121,799

300,067

-

4.2%

51,143

97,183

Airport South / Lake Nona

110

6,924,411

1,027,049

-

14.8%

62,047

34,969

33rd Street

133

5,854,861

440,178

-

7.5%

19,940

51,538

Southwest Outlying

46

2,424,592

-

-

0.0%

-

2,400

Winter Park

60

1,292,869

44,320

-

3.4%

-

-3,730

7

707,632

148,800

-

21.0%

-

-120,000

3,224

136,722,920

9,578,039

142,658

7.0%

772,961

1,019,111

Regency

Grand Total


6

Vacancy Rates & Asking Rates

Vacancy Rate %

Average Weighted Direct Asking Rate

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

2015 Q2

2015 Q3

2015 Q4

2016 Q1

2016 Q2

5.1%

4.5%

4.6%

3.8%

2.9%

$4.04

$4.09

$4.45

$4.67

$4.83

-

-

0.1%

-

-

-

-

-

-

-

Southeast Submarket

8.4%

8.5%

8.2%

8.8%

9.5%

$4.73

$4.85

$4.79

$4.92

$4.97


7.1%

6.8%

7.4%

6.6%

4.5%

$6.18

$4.96

$5.19

$5.58

$5.48

Regency

4.1%

4.1%

4.1%

21.0%

21.0%

$3.34

$3.50

$3.50

$3.50

$3.95

11.2%

9.9%

9.5%

13.9%

14.8%

$6.95

$6.60

$6.30

$6.37

$6.01

Downtown Orlando

7.0%

6.5%

5.6%

4.9%

4.2%

$4.86

$5.11

$5.46

$6.59

$8.74

33rd Street

9.1%

7.9%

8.4%

7.9%

7.5%

$5.49

$5.56

$5.52

$7.32

$7.34

Silver Star

6.2%

5.9%

5.8%

5.8%

5.4%

$5.97

$5.85

$5.95

$6.11

$5.93

Eastside University

6.7%

6.4%

6.6%

6.5%

6.9%

$8.38

$8.88

$8.88

$8.63

$8.35

Northwest Outlying

3.9%

3.1%

2.2%

2.3%

2.3%

$5.49

$5.52

$6.53

$7.72

$5.04

Winter Park

5.0%

4.7%

3.1%

3.4%

3.4%

$8.61

$8.45

$7.30

$7.73

$7.81

Longwood / Altamonte

9.8%

8.8%

7.5%

7.8%

8.2%

$6.55

$6.49

$6.66

$6.68

$6.70

14.2%

14.3%

14.1%

13.9%

12.1%

$5.36

$5.08

$5.66

$5.48

$5.42

7.8%

7.4%

7.2%

7.4%

7.0%

$5.66

$5.42

$5.54

$5.82

$5.75

Kissimmee - St Cloud

Southwest Outlying


North Seminole

Grand Total


7

Vacancy Rates & Asking Rates

Vacancy Rate by Submarket 21.0% 14.8%

12.1%

9.5%

2.9%

4.5%

4.2%

7.5%

5.4% 6.9%

0.0%

8.2% 2.3% 3.4%

Average Weighted Asking Rates by Submarket $8.74

$8.35

$7.34

$4.83

$4.97

$5.93

$3.95

$5.04

$6.70 $5.42

Asking Lease Rate Range by Type (NNN)

$24.00

$21.00

$6.01

$5.48

$7.81

$21.77

$18.00 $15.00

$14.55

$15.00

$12.00 $9.00

$8.52

$6.00 $3.00

$3.50

$4.89 $2.97

$5.88 $2.50

$Flex/R&D

Warehouse Distribution


Light Industrial

$6.00 $3.46 $2.75 Manufacturing

$6.90 $5.79 $4.50 Bulk Warehouse

8

Leasing & Absorption

Top Lease Transactions Property Name

Submarket

Tenant Name

Leased SF

Deal Type

LeeVista Business Center Bldg F


Thyssen Krupp

79,300

New

Prologis Lake Mary Logistics Center

North Seminole

Irby

60,500

New

Liberty Park at AIPO


Shaw

55,840

Expansion

450 Gills Dr

Southeast Submarket

Bridgestone

43,120

New

Prologis Crown Pointe Park


Shell

42,354

New

2900 Titan Row


Trojan Battery Sales

31,500

New

LeeVista Business Center Bldg F


Zenith Lighting

26,500

New

Top Sale Transactions Property

Buyer

Shader Industrial Park - 2515 Shader Rd

Hanover Platinum LLC

Orlando Shader Realty Associates Ltd $10,700,000

302,420

200 Tech Park

RCS - Tech Park LLC

Sun Life Assurance Company of Canada $21,300,000

297,778

3122 Shader Rd South Building

3122 Shader Road Investors LLC

Cawley O'Dell Enterprises Inc et al

$6,300,000

124,587

7466 Chancellor Dr

The Realty Associates Fund XI LP

Chancellor Realty LLC

$6,850,000

103,501

515 Ferguson Dr

Kars Properties Inc

515 Ferguson Drive LLC

$1,500,000

80,287

11250 Astronaut Blvd South Bldg

Lawrence B Stone Properties #800 LLC

Steel Construction Systems

$1,611,000

60,373


Seller

Sale Price Square Feet

9

Industrial Advisory Board Members

Orlando Avison Young

Lisa Bailey

CBRE

David Murphy

Cite Partners

Matt Sullivan Wilson McDowell

Foundry Commercial LLC

Justin Ruby

DCT Industrial

Eric Penaranda

Mike Borling Eastgroup Properties Lisa Wilde

Tom McFadden Lee & Associates Bo Bradford

Colliers International


Lee Morris

10

Xceligent Orlando Team

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy. For more information, please contact :

Stephen Keith

Director of Analytics

(813) 601-4901

[email protected]

Brian Reece

Regional VP of Analytics Eastern Region

(919) 829-9627

[email protected]

Danny Rice

Regional VP of Sales Florida

(407) 562-8094

[email protected]

David Vaden

Director of Client Services

(540) 537-9130

[email protected]

Quentin Jackson

Director of Client Services

(407) 267-5831

[email protected]

Lynda McNally

Director of Financial Services

(727) 463-2895

[email protected]


11