Large blocks of quality space are becoming increasingly scarcer in the Orlando market. As employers expand and new-to-market tenants demand bigger office spaces, availability is dwindling and driving interest in the suburbs – again.
In 2015, Orlando led the country in job growth and creation. This boom is trickling down into the submarkets including Lake Mary, the Southwest Corridor, and Maitland Center. Considering the area’s growing population, educated workforce and low cost of business operation the trend is expected to continue.
Since 2015, the demand for office space greater than 80,000 square feet increased by over 30% and supply is not meeting demand. In June, there was only one Orlando building on the market that offered more than 100,000 square feet.
Companies are once again looking at every corner of Orlando to fulfill their needs. One plausible answer is new construction, however, rental rate increases will be required to justify the development costs.
Shared workspaces have emerged as a viable option for local entrepreneurs who need less space. Coworking provides the opportunity to work in a collaborative space, while receiving Class A amenities and eliminates the time required to set up a new office. To date, 21 shared workspaces have opened in Orlando.
As eyes begin to turn to the Orlando suburbs, JLL Executive Vice President Nick Poole breaks down the latest deals and market trends:
About the Author
Nick Poole specializes in tenant advisory services and economic incentive negotiations for local, regional and national clients. His responsibilities include new business development, lease and contract negotiation, cash flow analysis and execution of real estate transactions for office and industrial user-owned or leased locations.