ORLANDO, FL — Long-term projections for significant population and employment growth in the Orlando metro remain unchanged, although retail property fundamentals are softening due to sluggishness in the housing and employment markets, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.
(Mall at Millenia, Orlando, top right photo)
Retailer closures and fewer new store openings produced a subdued level of space absorption during the first six months of the year.
“In the m
onths ahead, investors may want to seek restaurants or convenie
nce stores located near limited-service hotels,” says Bryn Merrey, regional manager of the Orlando office of Marcus & Millichap.“With cost-conscious travelers trading down to lower-priced accommodations that often do not offer food service, nearby retail properties may post strong operating results.”
Following are some of the most significant aspects of the Orlando Retail Research Report:
· Employers in Orlando are forecast to add 2,000 jobs, a 0.2 percent gain.
· Developers are expected to complete 2.9 million square feet of new retail space in 2008.
· Sluggish demand and slower leasing activity will underpin a 170 basis point increase in vacancy this year to 9.8 percent.
· Asking rents are projected to inch up 0.8 percent to $18.79 per square foot.
· Effective rents will drop 0.7 percent to $16.57 per square foot due to easing demand.
For a copy of the complete Orlando Retail Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso, Communications Department, (925) 953-1716
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