Orlando Real Estate Market Report

Orlando Office Market

Annual full-service asking rental rates reached a new historical high of $26.09/SF, reflecting a 4.9% increase year over year. Both Class A and Class B asking rates increased to all-time highs of $27.11/SF and $24.94/SF, respectively. The second quarter of 2025 realized 119,711 SF of negative absorption as demand in the market remains muted. The vacancy rate rose 10 basis points quarter over quarter to 12.9% but was unchanged on a year-over-year basis. The under-construction pipeline remains muted with 126,577 SF in progress, accounting for only 0.2% of the market’s overall inventory. Total leasing activity closed the quarter at 775,183 SF, down 15.1% from the previous quarter, with an average lease size of 3,445 SF. Class A leasing accounted for 29.8% of the quarter’s activity by square feet, with an average deal size of 3,847 SF.

Orlando Industrial Market

The market recorded 171,260 SF of negative absorption in the second quarter of 2025. Despite the setback occupancy gains are expected to turn positive in the second half of the year as large tenant deals take physical occupancy. Overall rental rates reached a historical high of $11.39/SF in the second quarter of 2025, reflecting an 8.2% year-over-year growth. Vacancy increased by 220 basis points year over year to 9.2% in the second quarter of 2025, driven by deliveries outpacing occupancy gains. Construction deliveries totaled 1.4 MSF year-to-date, while the under-construction pipeline contracted to 3.6 MSF as new construction starts slowed. In addition, only 13.8% of the projects under construction are pre-leased.