X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-With projections of strong population and job growth, retail rents are expected to rise in 2008, according to the 2008 National Retail Report by Marcus & Millichap.

According to the report, asking rents will gain 3.5% to $19.51 per sf, while effective rents rise 4.2% to $17.67 per sf. The report also notes that supply is expected to exceed demand in the short-term, which could lead to increased vacancies. However, the balance between supply and demand could reach greater equilibrium before the year ends.

According to a CB Richard Ellis Q4 Orlando retail market report, average asking rents at neighborhood centers are $17.27 per sf, specialty centers $30 per sf, community centers $16.57 per sf, power centers $29.09 per sf, super regional centers $32.96 per sf and mixed-use center $27.08.

Part of the strength of the Orlando retail market is due to the tourism industry. According to the CBRE report, tourism taxes increased 12.3% from the third quarter to $13.6 million in the fourth quarter. There were an estimated 48.9 million visitors to Orlando in 2007, a number that is expected to increase by 3.4% to 50.6 million in 2008. “This strength is due to the weak dollar attracting foreign visitors to the Orlando area by giving them greater buying power,” the report states.

CB Richard Ellis first vice president of retail services Wood Belcher tells GlobeSt.com that the tourism industry helps to fuel growth in Orlando retail sector. “We have the draw of Disney which brings international travel and international money,” Belcher says. “You also have areas that cater to the time share business.”

Belcher predicts slow growth for the remainder of 2008, but didn’t believe the vacancy rate would rise sharply due to the delivery of new retail projects. “There will be slow, positive growth but not as crazy as it’s been in the past few years,” he says.

“Forward-looking property owners may want to accelerate searches for development sites in several areas, including Clermont, Minneola and Groveland in Lake County, as well as along the Innovation Way corridor in east Orlando,” says Marcus & Millichap Orlando office regional manager Gregory Matus.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.