"Developers are attracted to these regions due their accessibility to theme parks to the south," the broker says. There are more than 5,000 units filling the construction pipeline with the majority located in the south Orlando and south Orange County.

"Job growth is strong in the leisure and hospitality industries and in the business and professional services sectors, signaling the diversity of the local employment pool," Ekovich says. Vacancy is "rebounding strongly and should improve by 60 basis points to end 2004 at 7.7%," he says. "Gains in vacancy are due to stronger demand associated with local in-migration and employment growth."

The lowest vacancy rates in the metro area are in the more mature submarkets to the north, such as West Altamonte Springs and Northeast, State Road 436 and State Road 551 where access to office complexes are in demand. "Despite recent price appreciation, single-family homes are still relatively affordable in Orlando, and the loss of renters to homeownership remains a concern for local apartment owners," Ekovich says.

Asking rents are expected to increase by 3% to $778 per month by year end. "The highest submarket rents in Orlando are those within close proximity to employment centers," the broker says. Areas near theme parks support average rents of $919 per month in the far south submarket. "The Southwest/435 submarket, which is adjacent to Disney's property, is expected to post the strongest rent growth this year at 4.4%," Ekovich notes.