Medical office aside, Orlando’s office market
in general, appears to be modestly improving,
according to a Jones Lang LaSalle office market
insight report during the second quarter of 2010:
Class A buildings absorbed more than 100,000
square feet of space, although net absorption
remains negative. Additionally, the entire market’s average quoted rental rates continued to
decrease, according to the report.
In the near future, it projects a continued
soft office market with lease terms continuing to favor tenants with rent abatements and
increased improvement allowances. Birdie said
signs of encouragement do exist, though.
“There is cautious optimism,” Birdie said.
“Whether it’s office or retail, we are hoping the
downsizing of offices and closing of retailers is
pretty much over.”
The multifamily housing market has been by
far the most stable real estate type in the area.
With the single family home and condo market
hit extremely hard by foreclosures, Orlando
residents have moved back into more traditional
multifamily housing developments, said Kevin
Grail, CPM and IREM region 4 vice president.
He is also the president at Strong Management
Inc., in Winter Park, Fla. Things may not be
booming, he said, but they aren’t busting either.
“We’ve just been kind of steady…kind of
holding,” Grail said. “At least it’s not getting any
worse.”
Even though vacancies continue to rise and
rents continue to fall, Birdie said because an
oversupply of multifamily units does not exist
and more people are renting, it is likely the
strongest market in Orlando. However, effective
rents fell 1. 3 percent in the first quarter to $763
per month, 6. 8 percent lower than one year
earlier, according to a Marcus and Millichap’s
Apartment Research Market Update for the first
quarter of 2010.
[tOP left] THE ORANGE
COUNTY CONVENTION
CENTER HAS 2. 1 MILLION
SQUARE FEET (189,000
SQUARE METERS) OF
EXHIBIT SPACE.
[tOP riGht] RISING 17 STORIES INTO THE FLORIDA
SKY, CINDAERELLA CASTLE
IN THE MAGIC KINGDOM
AT WALT DISNEY WORLD
RESORT SERVES AS A
LANDMARK FOR PARK VISITORS.
PHo ToGRaPHY © CITY oF
oRlaNDo
