Renewals Drive Office Market

ORLANDO-The average third-quarter vacancy level in Central Florida’s 40-million-sf office market stands at 14%, up one percentage point from this time last year, according to a new Colliers Arnold study.

Landlords are offering a mix of incentives as class A rents drop from $3 to $4 per sf in some troubled submarkets. For example, Maitland Center, a 6.87-million-sf market and once one of the dominant office leasing and development areas in the metro area, has a direct vacancy rate of 17.5% with class A rents average $20.31 per sf and class B, $18.15 per sf.

The central business district, at 6.2 million sf, is 13.1% vacant but enjoyed the largest net absorption of 167,049 sf.