Orlando Retail Market Report

Favorable demographics draw retailers. Orlando led all major U.S. markets in consumer spending growth over the past year ended in June, fueled by the third-fastest household formation rate and significant growth among the 55-plus age cohort. In-migration to areas near the city’s center and rapidly expanding suburbs like Kissimmee and Sanford supported leasing activity in neighborhood and strip centers, particularly those anchored by grocery stores. Discount department stores and fitness centers kept demand elevated for big-box space, pushing metrowide vacancy to a near-record low of 3.8 percent as of June. Tight market conditions sustained rent growth over the past year, which is expected to continue moving forward — although a lack of new premium space may limit future gains.