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Market Report

Orlando Office Investment Forecast

2022 Outlook

Corporate Expansions Underpin Orlando Office Demand as Rent Growth Stimulates Mid-Tier Deal Flow

Limited development coincides with rapid economic growth. Positive net absorption returned to Orlando in the second half of last year, providing an optimistic outlook for office fundamentals entering 2022. Although vacancy increased on a year-over-year basis in 2021, the rate still remains 350 basis points below the national average. Further brightening the metro's outlook, the area's affordability and growing talent pool are enticing business relocations and expansions. Disney, InnovaCare Health and Checkr represent notable employers that recently announced plans to expand their local office footprints. Robust population and employment growth will bolster tenant demand for both traditional and medical office spaces this year, likely resulting in an uptick in leasing activity. Furthermore, developers are moderating the amount of supply entering the market, with only 450,000 square feet of space scheduled to deliver in 2022. This combination will allow for net absorption to outpace supply additions. As a result, vacancy will fall 150 basis points below its long-term average in the coming year.

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