IRR-Orlando Mid-Year Viewpoint 2015 Local Market Report - Office
Although the Orlando economy suffered substantially from the prior recession, the market has continued to strengthen in most aspects of the economy to include tourism, housing, and population growth. A considerable amount of growth in the area was generated in the Professional and Business Services sector which is significant with regards to the performance of the overall Office market
Office market conditions in the Orlando MSA have continued to rebound with improvement reported for the larger market in both occupancy and rental rates. This improvement has been the result of increased demand and also due in large part to the lack of new supply added to the market over the past few years. The development of medical office space has been notably more active than general purpose space and no new space was added to the market in the past 12 months.
Supply and demand factors in the region for the short term are expected to continue to stabilize but forecasts for the next few years indicate that the Orlando Office market will emerge with continued increases in both occupancy and rental rates. These trends in vacancy and rental rates tend to bode well for all office type products given that demand is forecast to outpace supply. Over the long run, employment growth and increased demand in the region should foster absorption of the excess supply in the overall region.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.