MIAMI—The Maitland Center submarket in the Orlando area has seen a big turnaround in recent months. It's official the region's second largest office submarket with an inventory of 5.7 million square feet, according to CBRE.
With an uptick in leasing activity and increasing lease rates, the total vacancy rate dropped to 10.3% in the first quarter 2017. That's down significantly from 16.5% in the first quarter of 2016.
Institutional investors see these numbers and are rushing into the Maitland market. In 2016 and 2017 alone, investors acquired 21 properties in Maitland Center, a total of 1.13 million square feet and a sales volume of $95.263 million. So far in 2017, there has been a 43.4% increase in the total square feet sold and a 17.2% increase in the total sales volume year over year.
“The Maitland Center submarket is extremely sought after by investors at the moment, mainly due to strong leasing activity and a large decrease in vacancy in the submarket,” Ron Rogg, executive vice president of CBRE, tells GlobeSt.com. “So far this year, we have sold more than 600,000 square feet in Maitland Center with another 159,000 square feet under contract and we just launched a 196,000-square-foot portfolio of buildings for sale, which we expect to fly off the market given the current demand. The submarket is experiencing a tremendous momentum as no remaining land sites and strong barriers to entry all but guarantee significant rent growth in the immediate future.”
Maitland is part of the Central Florida trend of innovative mixed-use projects that include an office component. Meanwhile, the office market in Greater Orlando is seeing a perfect storm.
Allen Morris Company last summer broke ground on a $68 million mixed-use project in Maitland, FL, an Orlando suburb. Maitland City Centre is the city's first true urban, live-work community. The news comes in the wake of Oveido's mixed-use project announcement.
“Contrary to what a number of people thought about development in the City of Maitland, we strongly believed there was a void in the submarket given its extraordinary demographics, community passion and loyalty,” says Brian Grandstaff, principal of Millenia Partners. Maitland City Centre marks The Allen Morris Company's 82nd development.
MIAMI—The Maitland Center submarket in the Orlando area has seen a big turnaround in recent months. It's official the region's second largest office submarket with an inventory of 5.7 million square feet, according to CBRE.
With an uptick in leasing activity and increasing lease rates, the total vacancy rate dropped to 10.3% in the first quarter 2017. That's down significantly from 16.5% in the first quarter of 2016.
Institutional investors see these numbers and are rushing into the Maitland market. In 2016 and 2017 alone, investors acquired 21 properties in Maitland Center, a total of 1.13 million square feet and a sales volume of $95.263 million. So far in 2017, there has been a 43.4% increase in the total square feet sold and a 17.2% increase in the total sales volume year over year.
“The Maitland Center submarket is extremely sought after by investors at the moment, mainly due to strong leasing activity and a large decrease in vacancy in the submarket,” Ron Rogg, executive vice president of CBRE, tells GlobeSt.com. “So far this year, we have sold more than 600,000 square feet in Maitland Center with another 159,000 square feet under contract and we just launched a 196,000-square-foot portfolio of buildings for sale, which we expect to fly off the market given the current demand. The submarket is experiencing a tremendous momentum as no remaining land sites and strong barriers to entry all but guarantee significant rent growth in the immediate future.”
Maitland is part of the Central Florida trend of innovative mixed-use projects that include an office component. Meanwhile, the office market in Greater Orlando is seeing a perfect storm.
Allen Morris Company last summer broke ground on a $68 million mixed-use project in Maitland, FL, an Orlando suburb. Maitland City Centre is the city's first true urban, live-work community. The news comes in the wake of Oveido's mixed-use project announcement.
“Contrary to what a number of people thought about development in the City of Maitland, we strongly believed there was a void in the submarket given its extraordinary demographics, community passion and loyalty,” says Brian Grandstaff, principal of Millenia Partners. Maitland City Centre marks The Allen Morris Company's 82nd development.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
