Key Takeaways
- • CenterSquare acquired 33rd Street Industrial Park, a 65,185-square-foot, two-building service industrial portfolio in Southwest Orange County, Orlando, on behalf of a Midwest public fund investor.
- • The portfolio is 86 percent occupied with units averaging 3,200 square feet, featuring 18–24-foot clear heights, 100 percent grade-level loading, and conditioned warehouse space in nearly 90 percent of units.
- • The asset is strategically positioned in an infill microlocation adjacent to Orlando International Airport and Walt Disney World, with proximity to major demand drivers.
- • CenterSquare's value-add strategy focuses on institutionalization through conversion of gross leases to triple-net leases at expiration, implementation of active property management, and an aggressive leasing campaign to reposition the portfolio.
- • The off-market acquisition represents CenterSquare's second service industrial investment in the Orlando MSA and aligns with the firm's broader essential service industrial investment thesis.
Summary
CenterSquare Investment Management has completed the acquisition of 33rd Street Industrial Park, a service industrial portfolio comprising two buildings totaling 65,185 square feet located in Southwest Orange County's Orlando submarket. The investment was executed on behalf of a Midwest public fund investor and secured through an off-market transaction, leveraging CenterSquare's relationship-oriented sourcing approach.
The portfolio demonstrates strong occupancy fundamentals at 86 percent, with typical suite sizes of approximately 3,200 square feet. The buildings feature reinforced concrete block construction, 18–24-foot clear heights, and 100 percent grade-level loading capabilities. Nearly 90 percent of units include conditioned warehouse space, enhancing operational flexibility for service industrial tenants. The asset's infill location within a densely populated microlocation positions it adjacent to major thoroughfares and significant demand drivers, including Orlando International Airport and Walt Disney World.
CenterSquare's investment thesis emphasizes value creation through asset repositioning. The business plan centers on institutionalizing the portfolio by converting existing in-place gross leases to triple-net leases as current agreements expire—a structural improvement that enhances cash flow stability and tenant responsibility. The firm plans to implement active, hands-on property management and conduct a vigorous leasing campaign to reintroduce the portfolio to the market and optimize occupancy and rental rates.
This acquisition marks CenterSquare's second service industrial investment in the Orlando metropolitan statistical area, underscoring the firm's strategic focus on the service industrial sector. The transaction reflects broader institutional capital deployment into essential service industrial properties, a segment characterized by resilient tenant bases and stable demand fundamentals.
The portfolio demonstrates strong occupancy fundamentals at 86 percent, with typical suite sizes of approximately 3,200 square feet. The buildings feature reinforced concrete block construction, 18–24-foot clear heights, and 100 percent grade-level loading capabilities. Nearly 90 percent of units include conditioned warehouse space, enhancing operational flexibility for service industrial tenants. The asset's infill location within a densely populated microlocation positions it adjacent to major thoroughfares and significant demand drivers, including Orlando International Airport and Walt Disney World.
CenterSquare's investment thesis emphasizes value creation through asset repositioning. The business plan centers on institutionalizing the portfolio by converting existing in-place gross leases to triple-net leases as current agreements expire—a structural improvement that enhances cash flow stability and tenant responsibility. The firm plans to implement active, hands-on property management and conduct a vigorous leasing campaign to reintroduce the portfolio to the market and optimize occupancy and rental rates.
This acquisition marks CenterSquare's second service industrial investment in the Orlando metropolitan statistical area, underscoring the firm's strategic focus on the service industrial sector. The transaction reflects broader institutional capital deployment into essential service industrial properties, a segment characterized by resilient tenant bases and stable demand fundamentals.
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