Integra Ranks Area High in Services, Job Growth

But the 12th annual Viewpoint publication analyses, produced by Integra's 52 national offices covering 59 metro markets, gives Orlando top billing in the areas of services employment; finance, insurance and real estate employment (FIRE); top overall employment growth; and top annual growth by percentage change.

Orlando scored second in household and population growth projections.

"Orlando's outlook is bolstered by its military-based component of the economy, although its tourism and convention sector was certainly battered," Integra chairman Kevin K. Nunnink says in Viewpoint.

Unemployment rose to 4.4% in December 2001 from 2.5% in the same 2000 period, numbers that don't help fill vacant apartments. January employment was 6.1%, dropping to 5.3% in February. About 48,000 workers were looking for jobs in Orlando in February, according to the Florida Agency for Workforce Innovation in Tallahassee, FL.

"When the region's major theme parks closed early on Sept. 11, 2001, they lost almost $20 million, " Nunnink says. Several hotels remain temporarily closed, either for renovation or lack of occupancy.

The 1,000-room French Quarter hotel at Walt Disney World is one of those shuttered lodges that plans to reopen in May. Disney's 2,048-room Riverside hotel opened last month after being closed since 9-11. Both hotels are part of Disney's Port Orleans resort.

Orlando was absent from Integra's top 10 retail investment markets. Seattle, San Diego, Houston, Minneapolis and Dallas were the top five areas cited.

In industrial, Orlando placed fifth, behind Phoenix, Seattle, Dallas and San Diego. In the top 10 CBD office markets, Orlando could only gain a No. 9 spot, trailing Houston, Downtown New York, Washington, DC, Sacramento, CA, Denver, Las Vegas, Atlanta and Charlotte. San Diego was in 10th position.

Orlando did a little better in the suburban office sector, placing eighth. Leading the field were Washington, DC, Midtown New York, San Antonio, TX, Sacramento, San Diego, Houston and Las Vegas. Tampa, FL and Detroit brought up the rear in that order.

In the multifamily category, Orlando's 127,188 units ran fourth behind Washington, Sacramento and Houston. Lower down were San Antonio, Tampa, Minneapolis, Dallas, Portland, OR and Los Angeles.

Although not the shining stars they may have been in previous years, all Orlando markets should improve by year end, George D. Livingston, president, Central Florida chapter, National Association of Office and Industrial Properties, tells GlobeSt.com.

In Central Florida, the office market is in the midpoint of its recovery phase, say Livingston, founder/president, Realvest Partners Inc., Maitland, FL. "Starts will likely remain low for the second straight year and rents will be flat to down for 2002, but will increase in 2003 as demand grows."

Warehouse and distribution centers will also reach the middle of their recovery phase by the fourth quarter, according to a new study Livingston cites from Dr. Glenn Mueller of John Hopkins University, Baltimore, MD.

"Modest gains should be seen, starting in September, increasing measurably in 2003," Livingston says. "Absorption should slightly train economic expansion, but will improve." Rents will begin to grow in 2003 as markets improve.

"The supply-demand equation in all market segments has been helped by a relatively disciplined market and a lack of overbuilding," Livingston says.