ORLANDO, FL--GVA Advantis presents its fourth quarter overview on the Orlando office market:Clearly in the grasp of a long-lasting recession, Orlando’s office market is holding its own in this economy. Here is a look at how The City Beautiful fared at the close of the year compared with two prior years.
Interestingly, at least two fundamental measures saw slight progress or remained stable in 2008: asking lease rates and sublet vacancy rates. Investment sales are off around the country by approximately 75%, according to informed sources.
While enjoying a healthy increase from 2006 to 2007, Orlando suffered a 60% dip in sales for 2008 in transactions of properties over 10,000 SF.
The metro area’s office sector vacancy rate improved by 0.2% over the third quarter to a still-too-high 15.1% to end the year.
Individually, most submarkets remained fairly flat in terms of availability with the only significant activity happening in two regions: direct vacancy in the Airport submarket rose from a third quarter showing of 4.7% to 7.1%, with Class A available space more than doubling.
Disproportionate swings continue in Lake Mary/Heathrow/Sanford, which dropped five percentage points from 13.5% to 8.5% for the third quarter, but is now back up to 10.2%, with increases in availability among all classes, especially C space.
Net absorption suffered, adding another (121,316) for a YTD figure of (437,712). Five of 12 submarkets – Kissimmee/Celebration; Lake Mary/Heathrow/ Sanford; Northwest Orlando; University/Research; and Winter Springs/Oviedo – showed modest positive absorption for the year. However, it was not significant enough to override the other seven submarkets’ annual activity.
Net absorption suffered, adding another (121,316) for a YTD figure of (437,712). Five of 12 submarkets – Kissimmee/Celebration; Lake Mary/Heathrow/ Sanford; Northwest Orlando; University/Research; and Winter Springs/Oviedo – showed modest positive absorption for the year. However, it was not significant enough to override the other seven submarkets’ annual activity.
Overall sublet vacancy rates dropped significantly by almost 148,000 SF for the quarter, from 3.1% to a year-end total of 2.7%.
For a complete copy of the report, please contact:
Shelli H. Browning, Director of Marketing, Advantis Real Estate Services Company, 255 South Orange Avenue, Suite 750,Orlando, FL 32801. Office 407.849.6600. Direct 407.999.4775. Fax 407.849-6010.
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