Broker Raises Three Caution Flags on Area's Retail Sector

ORLANDO-Despite some national studies indicating Orlando’s 46 million-sf retail market may be over-developed based on a metro population of 1.5 million, John M. Crossman, senior vice president and director of retail services at Trammell Crow Co. here, doesn’t think so. But he raises some flags on at least three elements that could change the current 93.6% occupancy scenario.

He disputes the over-development thesis at regional shopping centers by pointing out the metro area has been averaging about 800,000 visitors a week, bringing the 1.5 million population number to 2.3 million. “That brings our retail square-foot per capita much closer to the national average,” Crossman tells GlobeSt.com.

Additionally, he notes the over-development charge “doesn’t take into account that tourists typically spend a great deal more in a week’s vacation compared to a resident.” He says, “This is a strong reminder of how important tourists are to the local retail economy.”