Orlando Office Market
Annual full-service asking rental rates reached a new historical high of $26.02/SF, reflecting a 5.1% increase year over year. Class A rents increased 3.6% year over year to a new high of $27.37/SF. The first quarter of 2025 realized 51,721 SF of positive absorption but demand remains muted overall. As a result of supply outpacing demand, the vacancy rate rose by 60 basis points year over year to 13.0%. The under-construction pipeline remains muted with 189,168 SF in progress, accounting for only 0.3% of the market’s overall inventory. Total leasing activity closed the quarter at 789,253SF, up 6.0% from the previous quarter, with an average lease size of 3,195 SF. Class A leasing accounted for 48.8% of the quarter’s activity by square feet, with the average deal size roughly double the market average at 6,214 SF.
Orlando Industrial Market
The market recorded 442,591 SF of positive absorption in the first quarter of 2025, a notable rebound from the negative absorption of the previous quarter. Compared to this same time last year, occupancy gains increased by 1.9%. With several new leases signed but not yet fully occupied, absorption is poised for a solid year. Overall rental rates reached a historical high of $11.11/SF in the first quarter of 2025, reflecting a 5.2% year over year growth. The surge in deliveries over the past few years contributed to accelerated rental rate growth; however, this pace is expected to moderate in the near-term. Vacancy increased by 200 basis points year over year to 8.1% in the first quarter of 2025, driven by elevated deliveries, the majority of which remain vacant, outpacing demand. In the first quarter of 2025, construction deliveries totaled 664,498 SF, while the under-construction pipeline contracted to 3.8 MSF as new construction starts slowed. In addition, only 18.5% of the projects under construction are pre-leased.
Download Orlando Industrial Report 1Q25