ORLANDO OFFICE MARKET OVERVIEW
At the epicenter of Florida’s booming I-4 Corridor, the Orlando market
is experiencing tremendous population and economic growth. While
the office market has been slower to recover than most sectors of
commercial real estate—echoing national trends in the sector—leasing
activity is steadily increasing.
ORLANDO OFFICE MARKET TRENDS TO WATCH
While the Orlando office market still has some hurdles to overcome before reaching pre-pandemic leasing activity, the record investment sales volume seen in 2021 is a strong sign of investor confidence in the market. Over the course of 2022, our experts will be watching the following trends.
Strong acquisition opportunities: With office REIT activity down 14%, there will be greater opportunity for private investors and owner-users to acquire quality office properties. There should also be abundant opportunity to acquire Class B and C properties, as long as financing can be obtained.
Refinancing: To combat loss from current high vacancies, we expect to see increased interest from owners in refinancing their properties, especially for older, suburban buildings where tenants are less likely to renew leases.
Increased demand in the CBD: In effort to recruit and retain top talent, companies are keenly focused on the quality of space they are providing for their employees. We expect an influx of companies seeking to relocate from suburban properties to the urban core. Historic buildings that offer all the amenities of being downtown, at lower rents than the market’s Class A office towers, will be in high demand.
View or download Franklin Street’s Q4-21 Orlando Office Market Report below: