Orlando Real Estate Market Report

Orlando Office Market

Annual full-service asking rental rates reached a new historical high of $26.64/SF, reflecting a 5.8% increase year over year. Both Class A and Class B asking rates increased to all-time highs of $27.58/SF and $25.71/SF, respectively. The third quarter of 2025 realized 107,511 SF of negative absorption as demand in the market remains muted. The vacancy rate rose 53 basis points quarter over quarter to a recent high of 13.5% due to softer market conditions. The under-construction pipeline remains unchanged at 127,452 SF in progress for the second consecutive quarter, accounting for only 0.2% of the market’s overall inventory. Total leasing activity closed the quarter at 1.2 MSF, up 42.1% from the previous quarter, with an average lease size of 5,255 SF. Class A leasing accounted for 71.9% of the quarter’s activity by square feet, with an average deal size of 10,861 SF.

Orlando Industrial Market

The market recorded 2.0 MSF of positive absorption in the third quarter of 2025. Occupancy gains during the quarter marked the first time since the second quarter of 2023 that net absorption reached or surpassed 2.0 MSF. Overall rental rates reached a historical high of $11.39/SF in the third quarter of 2025, reflecting a 6.2% year-over-year growth. Vacancy decreased by 60 basis points quarter over quarter to 8.3% in the third quarter of 2025, ending seven consecutive quarters of rising vacancy. Construction deliveries totaled 2.2 MSF year-to-date, while the under-construction pipeline contracted to 2.5 MSF as new construction starts slowed. In addition, only 16.4% of the projects under construction are pre-leased.