Orlando Real Estate Market Report

Orlando Office Market

Annual full-service asking rental rates reached a new historical high of $25.68/SF, reflecting a 1.5% increase year over year. Class A rents increased 0.7% year over year to $27.26/SF. Negative absorption of 10,226 SF in the fourth quarter of 2024 pushed overall vacancy rates to increase by 100 basis points year over year to 13.1%. The year ended with negative absorption of 500,590 square feet. The under-construction pipeline remains muted with 328,465 SF in progress, accounting for only 0.5% of the market’s overall inventory. Total leasing activity closed the quarter at 905,108 SF, up 7.2% from the previous quarter, with an average lease size of 4,973 SF. Class A leasing accounted for 41.5% of the quarter’s activity by square feet.

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.