X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-There is a crane load of 1.7 million sf of new office space ready to hit the metro market in the next 12 to 18 months, but for now, all submarkets are in strong shape, according to a new analysis by the local office of Colliers Arnold Real Estate Services Co.

For example, the 9.89-million-sf central business district’s 182 buildings are at the 9.8% direct vacancy level, the best performance in the last five quarters. The overall market’s 49 million sf of class A, B and C space is at 14.8% vacancy, an improvement from 15.1% in the previous quarter.

Absorption remains positive at 320,855 sf, but still down from net absorption of 709,247 sf in fourth quarter 2004. Downtown absorption in the first quarter was 77,180 sf, up from 39,884 sf in the last audited quarter. Under construction Downtown and expected to surface in 2006 is 505,000 sf of class A product.

“Downtown office space remains highly sought after,” says Stan J. Sarnowski, Colliers Arnold’s director of market analytics and geographic information systems. “Vacancies are absorbed relatively fast and [new] construction is evident Downtown as demand remains high.”

The average class A rent Downtown is $23.70 per sf, full service. “Central Florida’s economy is very much alive and growing,” Sarnowski says. “Full service lease rates have been on the rise the past four quarters as vacancies have been declining.”

Orlando’s Eastside submarket, the largest at 11 million sf, posted a first quarter direct vacancy of 10.6% but showed a negative net absorption of 43,569 sf. The average class A lease rate is stable at 21.25 per sf, full service.

The suburb’s highest profile office submarket, the 6.5-million-sf Maitland Center area, is at 15.7% vacancy, an improvement of three points from 17.1% in fourth quarter 2004. Class A absorption went from a negative 11,361 sf in the final period of 2004 to a positive net absorption of 114,342 in first quarter 2005.

The 31,000 sf of new office space nearing completion marks “the first time in over a year that this submarket will see new inventory,” Colliers’ Sarnowksi notes. Average rents are $19.80 per sf, up slightly from a low period in 2003. “It’s a matter of time before they’re over the $20 mark once again,” the researcher says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.