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GlobeSt.com UPDATE: Tenants Control Office Market, Grubb & Ellis Says

ORLANDO-Fourth-quarter net absorption of 62,069 sf is at a three-year low in a 30.3 million-sf market as property owners of class A and class B assets increase concessions to keep 14% vacancies in check.

By Alex Finkelstein | Updated on January 14, 2002

ORLANDO-The party is over for metro Orlando’s office market. The 30.3 million-sf market ended 2001 with a 14% vacancy level and the worst fourth-quarter net absorption level since 1997.

“Three consecutive years of record growth and expansion in Orlando’s office market has come to an abrupt end,” Andrew McCaw Jr., vice president/office, Grubb & Ellis Co., Orlando, confirms to GlobeSt.com.

The fourth-quarter vacancy level matched the third-quarter performance, a new G&E study shows. But the vacancy curve has been generally upwards since fourth quarter 1999 when vacancies were at 8.3%. By quarter in 2000, they went to 9.7%, 10.2%, 9.9% and 9.3%. First quarter 2001 saw 10.9%, followed by 12.4% in second quarter.

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