MIAMI—Orlando's steady economic growth has supported both new residential and office development in the suburbs, providing areas for retailers to expand. In Orlando's core, as well in the communities of Ocoee, Clermont, Windermere and Winter Garden, work is progressing on thousands of new residences, according to Marcus & Millichap's latest retail report.

Though many of these areas are already densely populated, Downtown Orlando and other active submarkets are attracting more retailers, entertainment options and service providers to traditional retail space, the firm reports. This, M&M says, has sparked additional tenant and investor demand for value-add assets within or near the market's growing areas.

“The Central Florida retail market is currently experiencing an upturn, but it's nothing like the upturns we've seen in the past when the market was driven by big box retailers,” James Mitchell, senior vice president at CBRE, tells GlobeSt.com “We are seeing a flight to smaller retailers leading new developments, especially in high-growth residential trade areas that are leading the country in housing statistics.”