ORLANDO-Despite concerns from brokers that the office and industrial condo market in the city may overheat, developers are continuing to move forward with projects, according to a first quarter survey by GVA Advantis.

According to the survey, the majority of the city’s inventory of office condo space (79%) and industrial condo space (75%) has been built over the past six years. Orlando has 1.17 million sf of office condo space, which represents 4% of the total Orlando office market. In addition, 794,000 sf is under construction and another 449,000 sf is in the planned or proposed stages. The largest concentration of office condo space exists in Downtown, with 635,426 sf and another 473,000 sf under construction.

The city has 1.19 million sf of existing flex/industrial condo space, which represents 1.5% of the total industrial market. There is 539,420 sf under construction with another 280,996 sf in the planned or proposed stage. The survey included office and industrial buildings 20,000 sf or greater. The largest concentration of flex/industrial condo space exists in the Airport/Southeast submarket with 438,724 sf of existing space and another 223,400 sf under construction.

“To contend with traditional condo concerns or limited expansion flexibility and high initial investment, developers have offered unique financing and incentives, as well as setting aside a portion of condo space for rent,” Tom McFadden, GVA Advantis senior director of industrial services, tells GlobeSt.com.

The vacancy rates appear to bolster brokers’ concerns. The report found that the existing office condo market had a vacancy rate of 21% at the end of the first quarter, compared with an 11.3% vacancy rate in traditional office space. The vacancy rate for flex/industrial condo space was 25%. Sales prices range from $160 to $315 per sf for office condo space, $125 to $180 per sf for flex space and $85 to $160 per sf for industrial space.

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