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Job Losses Hurting Central FL Office Sector

ORLANDO-More deterioration is expected as rents reach their lowest point in two years.

By Carl Cronan | Updated on April 13, 2009

(Carl Cronan is editor of Real Estate Florida.)

ORLANDO-Significant job losses have led to continued deterioration within the Central Florida office market, leading to a sixth straight quarter of negative space absorption, according to Cushman & Wakefield. Overall vacancy increased slightly during the first quarter to 17.5%, while asking rents fell to their lowest level in two years at $22.41 per square foot.

Nearly 57,000 jobs were lost over the past year in the Orlando metropolitan area, mostly in professional and business services, pushing unemployment to nearly 10%. A research report by Marcus & Millichap predicts that 25,000 positions will be lost this year, with office-using employment contracting by 4% or 11,200 jobs.

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