Orlando Office Market
Annual full-service asking rental rates fell slightly to $25.04/SF, a 0.5% decrease year over year and a 0.9% decline from the historical high in year-end 2023. Despite no new deliveries for two consecutive quarters, the decline in occupancies have pushed overall vacancy rates to increase by 160 basis points year over year, to a recent high of 13.1%. The under-construction pipeline remains muted with 381,578 SF in progress, accounting for only 0.6% of the market’s overall inventory. Total leasing activity closed the quarter at 969,031 SF, averaging 3,955 SF per deal and reflecting an increase in deal size by 27.0% quarter over quarter and 4.6% year over year.
Orlando Industrial Market
The market reported 507,099 SF of positive absorption in the second quarter of 2024, increasing 49.7% quarter over quarter. Overall rental rates were unchanged in the second quarter at $10.08/SF, a year over year change of only 0.1%, signaling a slowing pace of growth. Construction deliveries totaled to 1.0 SF delivered in the second quarter of 2024, while the pipeline receded for the seventh consecutive quarter to 3.9 MSF under construction. Vacancy increased by 300 basis points year over year to 7.3% in the second quarter of 2024, pushed up by an influx of deliveries which continue to outpace demand.
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