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Demand for Office Remains Strong With No Signs of Local Slowdown

ORLANDO-Grubb & Ellis Co. predicts the market will end the year with a record two million sf of net absorption. St. Joe Commercial, the area's dominant developer, expects to lease a minimum 300,000 sf of class A next year and is negotiating to buy four area assets totaling about a half million sf.

By Alex Finkelstein | Updated on December 22, 2000

ORLANDO-National economic slowdown or not, metro Orlando’s office leasing and development markets continue to roll. The combination of new companies entering the market and existing tenant expansion is accounting for an unprecedented third-quarter net absorption of 623,804 sf, according to Grubb & Ellis Co.’s Orlando office.

Vacancies are at 9.9%, down from 10.2% in the second quarter. Downtown, which recently added about one million sf of class A product, experienced its largest single quarter net absorption (252,021 sf) in the last decade.

“After 10 years of no new construction of multi-tenant buildings, this strong absorption activity proves that pent-up demand for space in the central business district is high,” Jeffrey S. Sweeney, managing director and executive vice president of Grubb & Ellis’ Southeast division, tells GlobeSt.com.

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