The City Beautiful is booming, but what does that mean for businesses seeking office space in Orlando, Florida? Let’s take a look at a snapshot into the current Orlando office space market conditions and explore future trends to help you make informed decisions.
- Moderate vacancy: 13.86% vacancy offers tenants a decent selection of spaces while maintaining a competitive edge for landlords.
- Downward leasing activity: Leasing activity dipped to 2.1 million square feet in 2023, reflecting tenant downsizing and a cautious approach in the current economic climate.
- Adjusted sales prices: Sales prices saw a downward adjustment of 24.8%, potentially creating buying opportunities for investors and businesses looking to own their office space.
- Ongoing construction: Despite the slowdown, 127,000 square feet of new office space is under construction, indicating long-term confidence in the market’s future and potential for new and modern options in the coming months.
- Flight to quality: Tenants are increasingly prioritizing modern buildings with desirable amenities, such as fitness centers, on-site cafes, and collaborative workspaces that foster innovation and employee well-being. Flexible layouts that can adapt to changing business needs are also highly sought-after.
- Suburban growth: Areas like Lake Nona and Maitland are experiencing a surge in interest due to their affordability, access to a growing talent pool, and potential for a more relaxed work-life balance.
- Rise of co-working and flexible spaces: With the increasing popularity of remote work models and the needs of startups, co-working spaces and flexible lease options are gaining traction. These options offer businesses the ability to scale their workspace needs up or down easily and avoid long-term commitments.
- Tech and healthcare: These sectors remain strong drivers of office space demand in Orlando, providing stability and growth potential for the market. Businesses in these industries are often on the lookout for modern, collaborative spaces that can attract and retain top talent.
Remember, this information is based on data available in January 2024. The market is constantly evolving, so it’s important to conduct your own research and consult with local experts before making any final decisions.
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- Avison Young Orlando Office Market Reports: https://www.avisonyoung.us/web/orlando/properties-for-lease
- Cushman & Wakefield Orlando MarketBeats: https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/orlando-marketbeats
- CBRE Orlando Commercial Real Estate: https://www.cbre.com/offices/corporate/orlando
- JLL Orlando Office Insight: https://www.us.jll.com/en/trends-and-insights/research/office-market-statistics-trends/orlando
- CommercialCafe Orlando Office Price per Sqft and Office Market Trends: https://www.commercialcafe.com/blog/how-much-office-space-rent-10k-month/