Orlando Office Market
During the fourth quarter of 2025, the Orlando office market reported 54,154 SF of negative absorption as demand remains soft. As a result, the vacancy rate also reached a recent high of 13.7%, climbing 12 basis points quarter over quarter and 27 basis points year over year. The construction pipeline declined 16.1% quarter over quarter, with 106,984 SF underway as of the end of the fourth quarter of 2025, accounting for 0.2% of total inventory. During the fourth quarter of 2025, asking rental rates in the market reached a record high for the second consecutive quarter, climbing 5.1% year over year to $26.70/SF. Class A asking rates also increased to an all-time high of $27.74/SF, while Class B asking rates declined slightly to $25.60/SF. Following an extremely active third quarter, total leasing activity declined by 46.7% in the fourth quarter of 2025, totaling 0.7 MSF. The average lease size was 3,623 SF, down by 1,566 SF quarter over quarter and 529 SF year over year.
Orlando Industrial Market
The market recorded 577,098 SF of net absorption in the fourth quarter of 2025. The strong quarterly occupancy gain helped push yearly net absorption to near balance with supply, with supply exceeding demand by only 56,262 SF at year-end.
Overall rental rates reached a historical high of $11.45/SF in the fourth quarter of 2025, reflecting a 5.5% year-over-year increase. Vacancy increased by 24 basis points quarter over quarter to 7.8% in the fourth quarter of 2025, continuing to keep vacancy elevated in the market following the surge of deliveries in 2024.
Construction deliveries totaled 2.9 MSF for the year, while the under-construction pipeline contracted to 2.3 MSF as new construction starts slowed. In addition, only 11.7% of the projects under construction are pre-leased.