ORLANDO—Orlando's office market is spiking. Lake Mary, FL recently saw a mega lease—the largest in the submarket so far this year at 108,000 and an International Drive office building sold for $65 million in July. Those are just two of the many notable leases and acquisitions I've covered this year.
What does this fourth quarter of 2015 hold for Orlando's office market? Greg Morrison, principal and managing director of Avison Young in Orlando, offers some insights and data points.
“Office market in Orlando has good momentum in 2015,” Morrison tells GlobeSt.com. “Vacancy currently stands right 17% and is improving. Over 500,000 square feet has been absorbed this year already.”
Young also sees rates beginning to climb with new absorption. At the same time, he says, new construction is very minimal—with the exception of the Lake Nona area and the new 135,000-square-foot building under construction for CNA in Lake Mary.
“With solid new leasing activity and a limited amount of new construction in the pipeline we are expecting the market to continue to improve during the third and fourth quarter,” Morrison says. “We should see overall absorption and lease rates reaching levels last seen in 2007.”
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