ORLANDO-Although the office market was not as strong in Q2 as in past quarters, investors are still attracted to the market due to its long-term prospects, according to market reports.

During the quarter, the market experienced its first net negative absorption of 98,488 sf since 2004. The year-to-date absorption is still positive, however, at 142,798 sf, according to the CB Richard Ellis Q2 Orlando office market report.

However, the economic trends experienced by the region will continue to buoy the market through the rest of the year. Local employers are expected to expand payrolls by 26,000 workers by the year’s end, a jump of 2.3%, according to a Marcus & Millichap Q2 office research report. “Local office fundamentals are robust,” says Marcus & Millichap Orlando office regional manager Gregory Matus. “Long-term prospects remain bright, given the area’s population growth and the ongoing emergence of local knowledge-based office-using employment.”

Gross asking rental rates have continued to increase over the past few years from $19.50 per sf from the same quarter in 2005, to the current quarter’s total market average of $21.65 per sf. The average lease rate for class A office space in the Downtown submarket is $27.59 per sf, according to CB Richard Ellis.

The median sales price has increased 26% over the past year to $190 per sf. The median sales price for properties selling for less than $5 million has advanced 30% to $189 per sf during the same time period, according to Marcus & Millichap.

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2024 ALM Global, LLC. All Rights Reserved.