Leasing and demand are on the decline for office space in Orlando, Florida. This comes from a second-quarter report from JLL, which showed that there were just 500,000 square feet of signings in the market during the three-month period, down 25 percent year-over-year.
That played a role in negative net absorption in the year-to-date through June, which reached -58,000 square feet. Total leases so far this year have hit one million square feet, with less than 50 percent coming from renewals.
"Key deals include Abbott securing a new 66,000-s.f. space and Healthfirst renewing 57,000 s.f., both within Lake Mary's Northpoint Park," JLL highlighted.
"The average lease size for the year is slightly above 15,000 s.f., growing by approximately 4,000 s.f. compared to last year."
Along with deal sizes remaining large, there were some other positive signs. Average asking rents surged by 5.6 percent to $28.96 per square foot full-service gross. Class A office properties rose by 3.2 percent to $31.11 per square foot.
Also, vacancy was stable, with the rate down by five basis points at 15.7 percent.
And the forecast is favorable overall for office landlords in Orlando. JLL predicts that vacancy in the market will continue to decline, while rents will increase further as supply remains scarce. Also, it projects that net absorption will finish the year in positive territory.
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