January 21, 2008 Monday
'Wait and see' for warehouse market By: Jerry W. Jackson, Sentinel Staff Writer
The Orlando area's bulk-warehouse market ended 2007 with a quiet three months of lease activity, as prospective tenants "wait to see where the economy is headed," Rebman Properties Inc. concluded in its fourth-quarter survey.
Although few new leases are being signed, the survey of brokers handling 130 local warehouse buildings found that even fewer tenants are leaving. So the vacancy rate actually fell slightly, to 11.71 percent at year's end. That was down from 12.14 percent at the end of the third quarter but still well above the 8.5 percent vacancy rate at the end of 2006.
Average quoted rental rates were $4.65 a square foot on a triple-net basis, essentially unchanged from the third quarter. The report also projected that "rates are expected to hold near their current levels during 2008."
With two new warehouse buildings added to the region's total during the year, the survey found that the total square footage of such space in the Orlando area edged past 16 million. About 1.9 million square feet was available, and the net absorption, or change, was up 179,655 square feet during the final three months of the year.
Industrial warehouse space ebbs and flows with the economy, as manufacturers and distributors adjust inventory based on demand and projections. With the economy weakening, the industrial market is in a "wait-and-see mode," said Greg Rebman, head of the Winter Park-based company.
"Brokers responding to the survey generally felt that the industrial market will remain flat for the indefinite future while concerns continue regarding housing values, the subprime mortgage market, jobs and interest rates," Rebman said in his report. "The industrial market is thought to be fundamentally strong, albeit quieter during 2008 than in 2006 and the first half of 2007."
Added 'Greenery'
The Orlando area's U.S. Green Building Council wants to make it easier for a Central Florida project to go green.
Leaders of the council in Central Florida are accepting applications for the 2008 Legacy Project, which provides free green-building consulting services for a selected project. The Legacy Project will defer some of the costs of LEED certification while providing local chapter members the chance to participate in a sustainable construction project.
The Legacy Team includes architects, engineers, land planners, developers, and landscape architects. The application deadline is March 31. For more details see the Web site at
http://chapters.usgbc.org/centralflorida.
Residential
Centex Homes has sold more than 200 new town homes in its South Meadow project in south Orlando off South Orange Avenue at Town Center Boulevard. Only 32 remain. They are priced from the $160,000s, well below the region's existing median home-sales price. "South Meadow has proved to be one of our most popular communities," said Carol-Ann Barody, director of marketing for Centex in the Orlando region. Two- and three-bedroom town homes in South Meadow range from 1,300 square feet of living space to more than 1,800 square feet plus a one-car garage. Dallas-based Centex, founded in 1950, is one of the nation's leading home builders, operating in major U.S. markets in 25 states.
Commercial
Construct Two Group, construction manager for the Orange County Public Schools Lake Whitney-Thornebrooke Elementary school project, is nearing completion of work on the two-story, $15 million facility in west Orange County. The two-story building is approximately 97,000 square feet, with art and music rooms, classrooms and several outdoor activity areas. It also houses administration, multi-purpose and dining spaces. Construct Two also recently completed a $3.1 million bus transfer terminal in Winter Haven. With a Mediterranean-inspired design, it features a 42-foot red-tiled roof and mosaic-tile artwork created by a local artist and Polk County students. With offices in Orlando, Tampa, and Tallahassee, CTG is one of Florida's largest black-owned construction-management companies. Derrick Wallace is the chief executive officer.
Leases
Jeff K. McFadden, managing partner of Winter Park-based Taurus Southern Investments LLC, said that Jacksonville-based Sea Star Line LLC has signed a 10-year, 30,018-square-foot lease for its new company headquarters at Taurus Southern's Greystone Park office complex in Jacksonville. Traci Jenks and Peter Ramsey of CB Richard Ellis in Jacksonville represented Taurus Southern. Bruce Jackson, also of CB Richard Ellis, Jacksonville, represented the tenant. Sea Star Line is a privately held company providing integrated transportation services to and from the United States, Puerto Rico, the U.S. Virgin Islands and the Eastern Caribbean.
Weak-market strategy
Winter Park developer Doug Trovillion has started offering lease-option contracts to potential buyers for his $40 million high-end condo now nearing completion. That allows people who want to buy a condo unit, but may be having trouble selling their own home, to lease until they are able to sell. The project, The Trovillion, is named for the fourth-generation Winter Park family.
CONTACT:
Jerry W. Jackson can be reached at jwjackson@orlandosentinel.comor 407-420-5721.
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