· Led by reductions in the professional and business services and financial activities sectors, total employment in Orlando will fall by 10,600 workers this year, a 1 percent decrease. In 2008, employers cut 15,800 jobs.
· In 2009, developers are slated to complete 2,200 apartments, down from 2,700 units last year. Multi-family permit issuance is expected to decline from about 6,000 units in 2008 to 4,000 units this year as construction pipelines are adjusted.
· The average vacancy rate is projected to increase 120 basis points in 2009 to 10.7 percent. Last year, a rise in completions resulted in a 240 basis point vacancy spike.
· Asking rents are expected to advance 0.3 percent this year to $883 per month. Effective rents are forecast to drop 1.6 percent to $805 per month as owners offer greater concessions to attract renters.
· Due to the recent slowdown in transaction velocity, buyers may be able to negotiate favorable terms in the early part of 2009. This trend will be most evident in sales of fractured condo conversions across the metro area and in deals involving recently built properties with low occupancy, especially near major employers in southern Orange County.
Also included in the report is the firm’s annual National Apartment Index (NAI), a snapshot analysis that ranks 43 apartment markets based on a series of 12-month forward-looking supply and demand indicators.