First-Half Office Sales in the Tank

Office building sales in Orlando are down to their lowest level in at least five years, according to a new study by CB Richard Ellis Inc. First half volume totaled $78 million compared with $147 million in done deals in the same 1999 period.

The reasons: higher loan costs; sellers holding out for top dollar; and institutional investors sated from their 1998 and 1999 purchases. For example, total 1998 sales were $370 million and $400 million last year.

Central Florida Research Park near the University of Central Florida in east Orlando garnered the bulk of the sales in the first six months of this year. Three transactions totaling $51 million captured three quarters of the total $78 million sold for the first half.