Orlando Office Market
Annual full-service asking rental rates reached a new historical high of $26.02/SF, reflecting a 5.1% increase year over year. Class A rents increased 3.6% year over year to a new high of $27.37/SF. The first quarter of 2025 realized 51,721 SF of positive absorption but demand remains muted overall. As a result of supply outpacing demand, the vacancy rate rose by 60 basis points year over year to 13.0%. The under-construction pipeline remains muted with 189,168 SF in progress, accounting for only 0.3% of the market’s overall inventory. Total leasing activity closed the quarter at 789,253SF, up 6.0% from the previous quarter, with an average lease size of 3,195 SF. Class A leasing accounted for 48.8% of the quarter’s activity by square feet, with the average deal size roughly double the market average at 6,214 SF.
Orlando Industrial Market
The market reported 117,851 SF of positive absorption in the fourth quarter of 2024, falling 22.8% quarter over quarter. Absorption for the year totaled 1.0 MSF, an 80.5% decrease from the prior year total. Overall rental rates increased to a historical high of $10.69/SF in the fourth quarter of 2024, reflecting a year-over-year growth rate of 2.3%. Elevated deliveries in 2023 accelerated rental rate growth over the last year, however the pace of growth is expected to moderate in the near term. Construction deliveries totaled to 1.0 MSF in the fourth quarter of 2024, while the pipeline contracted to 4.2 MSF under construction as new construction starts slowed. Vacancy increased by 370 basis points year over year to 7.7% in the fourth quarter of 2024, as elevated deliveries, the bulk of which have no tenant in place, outpaced demand.
Download Orlando Industrial Report 4Q24