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Office Market Tanks as Owners Offer Six Months Free Rent on Five-Year Leases

ORLANDO-Five million sf is vacant in the six submarkets monitored in the second half by four area brokerages. Downtown vacancies are at 12.4%, up from 9.5% in the same 2001 period. South Orlando is drowning at a 25.1% vacancy level, up from 15% a year ago.

By Alex Finkelstein | Updated on July 16, 2002

ORLANDO-Average quoted class A office rents of $24.34 per sf and class B of $17.90 per sf don’t begin to tell half the story of metro Orlando’s debilitating office market scene, separate second-half studies by four area brokerages show.

The brokerages are Cushman & Wakefield of Florida Inc., CB Richard Ellis Inc., Grubb & Ellis Co. and Trammell Crow Co.

Effective rents, after deep concessions, are much lower than the quoted numbers, brokers say. The overall vacancy level is at 18.9%, up from 12% a year ago and expected to continue rising through the end of the year.

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