CBRE Multi-Housing Market in metro Orlando Continues to Struggle

ORLANDO, FL--CB Richard Ellis has issued its mid-year report on the metro Orlando multi-housing market. Highlights include:

The Orlando Multi-Housing Market has continued to struggle through mid year, but may be lining up for one of the nation’s strongest recoveries over the next four years.

In the short term, local job loss and the challenged national economy have led to further weakness in the market.

Physical occupancy through June in the MSA stood at about 90%, down slightly from 91.9% at the end of 2008. Concessions remain prevalent, and most properties are offering about one month free.

Average rents through the 2nd Qtr were at $803 according to M/PF and Torto Wheaton Research, and are forecast to remain relatively flat through the balance of 2009.

The worst of the market seems to be behind us however, and M/PF Torto Wheaton projects that jobs and apartment rents will begin an upward climb in Orlando in 2010.

Favorable supply/demand balances and strong job formation over the next five years have Orlando poised for strong growth.

The Education & Health and Professional & Business Service sectors are predicted to see the highest average annual growth through 2014, with 2.5% and 2.8% annual increases respectively.

Overall, the MSA is projected to add 159,000 new jobs from 2010 –2014, with occupancy predicted to reach 97.1% at the end of that period.

Rents are also forecast to grow more than 4% each year from 2012to 2014, and will average $933 according to M/PF Torto Wheaton’s Summer 2009 Report.

For a complete copy of the report and related charts, please contact:

Shelton D. Granade, Jr., First Vice President (top right photo)
CB Richard Ellis Investment Properties - Multihousing
189 S. Orange Avenue, Suite 1900 Orlando, FL 32801. T 407 839 3103. F 407 404 5001
shelton.granade@cbre.com

http://www.cbre.com/shelton.granade