Orlando Office Market
Annual full-service asking rental rates rose slightly to a new historical high of $25.41/SF, reflecting a 0.8% increase year over year. Class A rents increased to an all-time high of $27.51/SF. Deliveries narrowly outpaced absorption in the third quarter, helping to push overall vacancy rates to increase by 130 basis points year over year. The under-construction pipeline remains muted with 432,465 SF in progress, accounting for only 0.7% of the market’s overall inventory. About 47.5% of the current pipeline is slated to deliver by year-end 2024. Total leasing activity closed the quarter at 759,303 SF, down 20.9% from the previous quarter, with an average lease size of 3,650 SF. Class A leasing accounted for 50.3% of the quarter’s activity by square feet.
Orlando Industrial Market
The market reported 152,714 SF of positive absorption in the third quarter of 2024, falling 71.8% quarter over quarter. Overall rental rates increased in the third quarter to $10.35/SF, a year over year growth rate of 3.1%. Construction deliveries totaled to 382,462 SF in the third quarter of 2024, while the pipeline grew to 5.3 MSF under construction as new construction starts picked up. Vacancy increased by 370 basis points year over year to 7.4% in the third quarter of 2024, as deliveries continued to outpace demand despite both experiencing a decline.
Download Orlando Industrial Report 3Q24