As we conclude 2024, the sentiment among our peer group is that the industrial business is still good despite the market statistics we are reporting. In our first quarter report, we had 
predicted the vacancy rate to increase and rents to remain stable despite delivering another 3.49M SF. Both proved to be true. Rental rates grew, and our vacancy rate was up 265 basis points. We also opined that the economy was facing strong head winds, and the pending presidential election could pause progress. Both proved to be true and despite a virtually stalled leasing presence during the second half of 2024, we still finished the year with positive growth albeit anemic compared to prior years.
We finished the year with 7 out of 10 submarkets showing negative absorption. On paper that looks bad but in reality, the negative absorption was minimal with no one market having lost more than 85,000 SF. In the 4th Quarter, we posted 154,000 SF of negative absorption making it the second straight quarter in the red. The last time Orlando saw two quarters of negative absorption was 4Q of 2010 and 1Q of 2011 with the vacancy rate back then being 17.8%. The 4Q negative absorption can be attributed to a few larger Tenants whose businesses failed and vacated over 300,000 SF. Read More