Twenty nine of the year's 45 sales occurred in the second half of 2003. Miller's own division sold or financed 107 apartment transactions in Florida valued at $1.8 billion.

"Market fundamentals should continue to improve, and we should see strong sales activity in Orlando until interest rates rise significantly," the CBRE executive says. He cautions, however, that "interest rates are likely to rise sometime later this year though, which could have an adverse effect on sales prices for those properties that are being sold on an all-cash basis without existing debt."

On the renting front, occupancy increased to 92% from 91.3% a year ago and average base asking rents rose to $743 from $738. "Orlando is one of the small number of metros in the nation that can boast an annual occupancy improvement in 2003," Miller says. The main reason, he says, was that "renter demand exceeded new deliveries of 4,793 units and the conversion or pending conversion of over 2,000 apartments to condominiums for sale aided gross occupancy as well."

Concessions by owners "still remained prevalent in most of the market," the broker says. However, "overall, (rent price) specials are on the decline, but the leasing environment continues to be competitive."

New construction was modest with only 3,761 units under construction at year end 2003, down from previous high years of 5,000 to 7,000 new units annually. "The number of apartments under construction is the smallest reported in Orlando since March 1995, when approximately 3,712 units were built," Miller notes. He predicts the low construction number should help the occupancy column this year, triggering more demand for available units.

Also aiding demand and effective rental rates in most cases is the city's "increasing population and statewide leading job growth" figures, Miller says.