Major Industrial Lease In Apopka Bucks Trend As Orlando Vacancy Hits 10-Year High

A large industrial facility in Apopka secured a significant lease as the demand for expansive spaces slows down.

Apparel manufacturer Legendary Holdings signed a 10-year lease for a 283,170-square-foot facility located at 5101 Wesley Road. This building is part of the four-building Orlando-Apopka Commerce Center, which is owned by EQT Exeter Properties, a company based in Pennsylvania.

EQT Exeter acquired the 91-acre commerce center property in 2020 for $14.5 million, according to county records, with all of its buildings completed in 2023.

Legendary Holdings, founded in 1991, will consolidate its operations from two existing Apopka locations into the new facility. The commerce center is less than three miles from the entrance to State Road 429, a major route for shipping and logistics.

In a statement, Legendary Holdings CEO KC Tolliver expressed that the company’s business has grown in recent years.

He mentioned, “With the opening of this new distribution center, we’ll have the agility to support our customers more efficiently than ever right here in Central Florida, with its strong sense of community and characteristics that align with our company’s mission and values.”

The lease deal was facilitated by Winter Park-based HLI Partners, which is also managing the subleasing of Legendary Holdings’ former properties in Apopka, located at:

• 1349 Ocoee Apopka Road, 89,578 square feet
• 2840 W. Orange Ave., 70,325 square feet

Josh Lipoff, principal at HLI Partners, stated, “We are proud to have played a key role in Apopka’s largest industrial deal of the year, highlighting the area’s strong market appeal.”

According to analytics firm CoStar Group, the average industrial lease in the Northwest Orange County submarket is $13.83 per square foot, compared to $14.20 per square foot for the broader metro area.

Industrial vacancy rates in the metro are at a 10-year high of 8%, with larger properties experiencing even more challenges. Vacancy rates in buildings smaller than 100,000 square feet are at 4.2%, while larger buildings see vacancy rates above 13%.

Over the past five years, the Northwest submarket alone has added 8.9 million square feet of new industrial space.

Lisa McNatt, director of market analytics for CoStar in Orlando, noted, “Fewer large space users are looking to expand in the Orlando market than two years ago, and that has had a clear impact on demand.”

Source:  OBJ