Q1 2025 Market Report
As we enter 2025, the industrial market remains resilient despite the trends reflected in our latest statistics. In our prior reports, we anticipated that vacancy rates would continue their upward trend while rental rates would hold steady. This quarter’s data has confirmed both expectations, with the total market vacancy rising to 8.65% and rental rates maintaining their strength across most property types. The market absorbed 803,399 SF this quarter, a sharp rebound from the negative absorption seen in the last two quarters of 2024. For the first time in three quarters, we have seen quarterly absorption more in-line with historical averages of recent years. Interestingly, leasing activity for leases over 100,000 SF picked up substantially with 6 leases being completed in the first quarter. The leases under sub-50,000 SF, dropped off significantly this quarter. That is something we are monitoring closely as record high rental rates seem to be impacting smaller tenants.
Sale transactions were down significantly in Q1; however, there were some larger national and regional portfolio sales with buildings in Orange and Seminole County that traded... Read More
