Industrial Real Estate in Orlando, FL

Cap rates for industrial properties in Orlando vary by submarket, property class, and occupancy levels. The overall Orlando market average cap rate is approximately 6.1%. Class A properties typically trade at lower cap rates than value-add opportunities.

Industrial has benefited from structural demand drivers including e-commerce growth (which requires 3x more logistics space than brick-and-mortar retail), supply chain reshoring and nearshoring trends, inventory stockpiling following pandemic-era disruptions, and limited developable land in infill locations. These factors have driven vacancy rates below 4% nationally and pushed rent growth well above historical averages in most markets.

Bulk warehouses are large-scale distribution centers (typically 200,000+ SF) located along major transportation corridors, used for regional storage and distribution. Last-mile facilities are smaller (20,000-150,000 SF), located closer to dense population centers, and serve the final leg of delivery to end consumers. Last-mile properties typically command higher rents per square foot due to land scarcity and proximity to customers but offer lower overall NOI given their smaller footprint.

While tourism remains a major economic driver, Orlando has diversified significantly into healthcare, technology, and defense. The pandemic demonstrated both the risk (hospitality collapsed) and the resilience (recovery was swift due to pent-up leisure demand). Investors can mitigate tourism risk by focusing on submarkets and asset classes less dependent on visitors, such as Lake Nona medical office, suburban multifamily, or I-4 corridor industrial.

Orlando industrial has strong fundamentals driven by the metro's central Florida location and growing population. E-commerce fulfillment centers, grocery distribution, and building materials suppliers are active tenants. The market benefits from serving as a distribution hub for the entire Florida peninsula, and available land along the Florida Turnpike and SR-429 corridors supports continued development.