Orlando, Florida, draws tenants and principals alike to one of the hottest, thriving commercial real estate markets in the US.
The fast-growing metropolitan resort town is home to millions of residents, world-renowned tourist destinations, and an impressive inventory of land, commercial property, and upcoming development projects. Crexi is proud to offer Orlando-based investors and national principals the tools they need to analyze and transact Orlando commercial real estate.
Commercial brokers, too, can take advantage of Crexi’s lead tracking and listing management tools to close more deals and expand their networks. Thanks to Crexi’s robust listing platform, Orlando agents can save time and maximize their business.
At the time of this writing, Crexi’s marketplace has assisted $300 billion in total commercial property transactions and represented more than $1.2 trillion in asset value.
Crexi proudly serves Orlando, Lake Buena Vista, Kissimmee, Winter Garden, Altamonte Springs, and the entirety of Orange County as the region’s fastest-growing online CRE platform.
The State of Orlando Commercial Real Estate
Note: the current COVID-19 crisis has impacted this data. The coronavirus’ long-term impact has yet to be determined, but CRE professionals should keep these developments in mind when evaluating the following information.
Orlando is one of the most favorable development markets in the country for commercial construction, according to the US Development Opportunity Index from CBRE.
The metropolitan Orlando area ranks first on the list for multifamily development opportunities, seventh for retail, and ninth for office development. Low building costs and expanding opportunities are expected to keep the economy robust and the population growing over the years to come.
Located in Central Florida, Orlando is home to more than 2.6 million people in the metropolitan area. Orlando is the 3rd largest metro area in Florida, the 6th largest metro in the Southern US, and the 23rd largest metro area in the US spanning over 650 square miles, Greater Orlando is home to dozens of cities and suburbs, including Kissimmee, Sanford, Altamonte Springs, Winter Garden, and Winter Park.
Commercial real estate development in Orlando is booming across all asset classes throughout the region.
As CBRE reports, Orlando ranks among the top 10 markets for total space under construction in multifamily, office, industrial, and retail. In Orlando, government and business leaders are actively working to position the region as a professional-scientific-technical services hub to help diversify the economy from the entertainment and tourism industries.
Orlando Regional Breakdown
It may be the understatement of the year to say that Orlando’s population growth is on the rise. As the Orlando Economic Partnership predicts, metropolitan Orlando will double in size in less than ten years, adding 1,500 new residents each and every week:
- Orlando is home to nearly 300,000 people in the city and over 2.6 million residents in the Orlando-Kissimmee-Sanford metropolitan area.
- Population growth in Orlando was 2.52% year-over-year.
- Metro Orlando is home to several of the fastest-growing cities in Florida, including Apopka, Kissimmee, Winter Garden, along with the City of Orlando.
- The population of Orlando has grown by 48,600 people since 2010.
- Orange, Seminole, Lake, and Osceola counties comprise the Orlando metropolitan area.
- Orlando’s median age is 37.7 years, with 42% of the population between the ages of 20 and 49.
Although the region may be best known for world-famous entertainment destinations such as Disney’s Magic Kingdom, Epcot, and SeaWorld, tourism isn’t the only sector that powers Orlando’s job growth.
Central Florida Research Park is a 1,027-acre development next to the University of Central Florida with over 100 companies. This 68-acre mixed-use Creative Village Innovation District, just west of the Central Business District, employs thousands of workers and provides housing while creating a place for businesses to expand with a qualified workforce:
- The Orlando-Kissimmee-Sanford MSA’s GDP is over $147 billion and has grown by more than 60% over the last decade.
- Orlando’s employment growth is 3.23% year-over-year, while median household incomes have increased by 6.39% over the past 12 months.
- Over the past three years, Orlando’s job growth was 11%, with the average employment in Orlando predicted to increase by 19% over the next ten years.
- Orlando Economic Partnership forecasts that the metropolitan area will create nearly 500,000 new jobs by 2030.
- Orlando’s employment sectors expected to grow the fastest over the next ten years include computer systems design, manufacturing and construction, engineering and transportation, and home and health care services.
- The largest employers in the Orlando metropolitan area include AT&T, Boeing, Lockheed Martin, Disney, United States Army Research, Patrick Air Force Base, and Cape Canaveral Air Force Station.
- University of Central Florida, Florida A&M, Florida State University, and Valencia College are some of Orlando’s major colleges and universities.
- Over 89% of Orlando residents are high school graduates, while more than 33% hold a bachelor’s degree or an advanced degree.
Orlando’s transportation infrastructure consists of interstate highways and expressways, freight and commuter rail service, and Orlando International Airport, the second-busiest airport in Florida, serving almost 50 million passengers each year.
Orlando Industrial Market
The expansion of retail and e-commerce firms in Central Florida has driven year-to-date leasing activity in the Orlando industrial market to the highest recorded over the last 25 years.
Overall triple net asking rents for industrial space in Orlando have climbed by 6.9% year-over-year, with leasing activity in the warehouse/distribution sector accounting for 93% of all industrial leasing activity in the Orlando metropolitan area:
- Total industrial inventory: 114,605,918 SF
- Overall asking rent: $7.07 per SF per year, net
- Vacancy rate: 7.5%
- Absorption: + 4,634,391 SF YTD 2020
- New construction: 4,268,691 SF brought to market with 1,902,274 SF under construction as of Q4 2020
- Largest industrial submarkets: Orlando Central Park, Airport/Lake Nona, Regency/Turnpike, Silver Star/Apopka
Orlando Office Market
Even though the overall vacancy rate increased by just over 2.0% as tenants readjusted space needs, asking rents for office space in Orlando increased by 2.3% year-over-year. Rents for Class A office space in metropolitan Orlando rose by 2.6%, while suburban office submarkets in Orlando saw rent gains of 4.0%:
- Total office inventory: 36,046,798 SF
- Average asking rents: $26.96 per SF per year, full-service gross
- Overall vacancy rate: 11.7%
- Absorption: – 367,855 SF YTD 2020
- Leasing activity: + 1,940,935 SF YTD
- New construction: 320,800 SF of office space under construction
- Largest office submarkets: Central Business District, Tourist Corridor, Maitland, Lake Mary
Orlando Retail Market
After three consecutive quarters of negative absorption, the retail market in Orlando is bouncing back.
Government restrictions are easing, boosting leasing of retail space and sales of shopping centers in the Orlando metropolitan area. Asking rents for retail property in Orlando have increased by over 5% year-over-year and by nearly 12.4% over the past two years:
- Total retail inventory: 71,838,920 SF
- Average asking rent: $18.81 per SF per year, NNN
- Total vacancy rate: 6.1%
- Net absorption: – 337,343 SF YTD
- New construction: 336,854 SF under construction
- Largest retail submarkets: West Orange, Altamonte/Longwood, Sanford/Lake Mary, Northwest Orange
Orlando Multifamily Market
Although Orlando is second only to Las Vegas in terms of dependence on the tourism sector, metropolitan Orlando is weathering the recession reasonably well. As the Orlando Multifamily Metro Outlook from Fannie Mae reports, significant investments are currently being made to expand and grow the metro area’s tourism industry, which should support significant growth in the Orlando apartment market over the long term:
- Total housing units: 1,077,100
- Renter occupied: 45%
- Average asking rent: $1,388 per month
- Vacancy rate: 6.75%
- New construction: + 3,000 new apartment units under construction
- Largest multifamily submarkets: Ocoee/Winter Garden/Clermont, Kissimmee/Osceola County, Central Orlando, South Orange County
- Median household income: $61,876
- Per capita income: $31,186
How Crexi Connects Buyers and Tenants to Orlando Commercial Real Estate
Principals and organizations interested in Orlando’s commercial property can easily browse investment options with Crexi’s simplified search functionality and robust marketplace.
Property seekers can search for Orlando properties for lease or for sale through the hundreds of options available on Crexi with a few clicks. Crexi’s advanced search functionality allows browsers to refine their search by dozens of parameters, including asset type, subtypes, cap rates, price or leasing rate per square foot, square footage, and amenities.
Once they’ve found the perfect property, buyers and tenants can directly connect with the listing broker with a single click. Users can also download property PDFs, request additional information, and even submit a letter of intent (LOI) via Crexi’s secure digital platform
Intelligence Equips Investors with Data and Market Knowledge
Knowledge is power when it comes to commercial real estate, particularly where significant financial decisions are concerned. Crexi Intelligence offers investors and tenants the most up-to-date market data to inform their investment decisions. Using intelligence, property seekers can access millions of property records and sales comparables, and over 50 in-depth MSA market reports.
Intelligence’s robust data library enables those interested in Orlando property to make the best possible investment decisions.
Intelligence is available to buyers, sellers, and tenants on a subscription basis.
How Orlando Brokers Thrive with Crexi
Orlando brokers market more than 350 properties for sale and over 1,100 listings for lease on Crexi within the city limits. Orlando commercial agents represent a hotspot commercial real estate market with advantageous cap rates and investment opportunities as more industries eye Florida’s tax-friendly policies and sharply increasing population.
Commercial brokers in Orlando use Crexi’s powerful broker tools to market properties to a growing database of active property seekers. Using the broker dashboard, agents gain real-time insights into buyer and tenant lead behaviors. This insight allows brokers to connect with the most valuable leads as soon as they indicate interest.
Orlando commercial brokers can list their assets across property sectors, including:
- Multifamily developments
- Mixed-Use buildings
- Retail properties
- Land parcels
- Industrial buildings
- Non-traditional properties such as data centers, self-storage, etc.
Thanks to Crexi’s online tools, Orlando commercial real estate brokers can easily navigate their properties from initial list to closing deals. Crexi’s secure file storage can even house due diligence paperwork throughout the deal process.
And while Crexi’s free broker tools are more than capable, the unchecked power of Crexi emerges with Sale PRO, Lease PRO, and All PRO.
Crexi’s All PRO Membership
Crexi’s PRO offerings allow Orlando commercial real estate brokers to build out their deal pipelines and close more deals effectively. With highly detailed lead contact information and simple organization, brokers can easily prioritize leads and connect with the most promising buyers and tenants.
PRO is designed to reduce collaborative friction and enable Orlando commercial agents to download branded lead reports for internal and client reporting. PRO listings also receive preferential tile placement at the top of search result pages, more visible to property seekers.
Crexi also aids PRO brokers in their marketing efforts, sending emails to hundreds of thousands of active users each week. Thanks to the machine learning and AI integrated into the platform, these emails contain highly relevant properties curated to each user’s search behavior and earn 10-15% more clicks than industry benchmarks.
PRO users also enjoy access to Crexi’s Intelligence database at no additional cost, arming them with in-depth market knowledge with which to provide more value to clients.
Brokers with Crexi PRO can quickly interact with the over 127,000 leads who have indicated an interest in Orlando properties in the last two years and more than 3 million leads across the country that have searched on Crexi in 2020.
On average, Crexi PRO users successfully engage with 125% more leads and close up to eight times more deals than non-PRO subscribers.
Contact email@example.com to learn more about All PRO.