Orlando Office Market
Annual full-service asking rental rates fell slightly to $24.88/SF, a 0.9% decrease year over year. Occupancy increased but a surge in deliveries in the previous quarter have pushed overall vacancy rates to increase by 120 basis points year over year, to a recent high of 12.6%. The under-construction pipeline remains muted with 344,991 SF in progress, accounting for only 0.5% of the market’s overall inventory. Total leasing activity closed the quarter at 542,535 SF, averaging 2,840 SF per deal and reflecting a decrease in deal size of 33.2% quarter over quarter and 13.1% year over year.
Orlando Industrial Market
The market reported 102,769 SF of positive absorption in the first quarter of 2024, decreasing 86.5% quarter over quarter. Overall rental rates grew 2.2 % year over year to $10.12/SF but fell from the historical high of $10.45/SF reported the previous quarter. Construction deliveries rose to 2.5 SF delivered in the first quarter of 2024, while the pipeline receded to 4.3 MSF under construction, shifting toward pre-pandemic levels. Vacancy increased by 240 basis points year over year to 6.3% in the first quarter of 2024, pushed up by an influx of deliveries which outpaced demand for the second consecutive quarter.
Download Orlando Industrial Report 1Q24