ORLANDO—Orlando’s economy has more than rebounded, it’s attracting foreign investors and developers are readying to erect cranes in the skyline in the months ahead. Some are even saying Orlando could set the pace for Florida’s growth this year.
Welcome to the official launch of GlobeSt.com‘s dedicated Orlando edition, where you will find the latest analysis, deals, trends, forecasts and more on a daily basis. In addition to this daily edition, GlobeSt.com will distribute a weekly digest containing insights and analysis from its editorial team and Orlando’s movers and shakers.
“Our research shows that the Orlando commercial real estate market is coming back with a vengeance after a slow recovery,” says Michael Desiato, vice president & group publisher of the ALM Real Estate Media Group. “Orlando has diversified its economic engines and is poised for stronger growth in the years ahead, so offering an Orlando edition helps us help you stay informed on the news that matters most.”
Multifamily is the biggest of the big stories in Orlando. Rare Orlando multifamily communities are trading hands even a growing number of mega multifamily deals close. A slew of high-dollar multifamily projects are also underway in the urban core and submarkets like East and West Orlando. The multifamily vacancy rate is a slim 4.1%.
“Larger investment groups are eager to place significant amounts of capital on bigger deals,” Shelton Granade, executive vice president of CBRE Capital Markets, tells GlobeSt.com. “We’ve closed three apartment transactions of $50 million or more in Orlando in the last 30 days, and have other similar opportunities on deck. That demand is a testament to the strength of the multifamily market, and of Orlando as an investment target.”
With retail following rooftops, investors are snapping up iconic International Drive retail assets and vacancy is tightening at 6.2%, according to Marcus & Millichap. Retail developers will complete 900,000 square feet of space in 2015 after bringing 375,000 to market in 2014.
“Pricing is back to record levels,” Bobby Palta, a vice president with CBRE, tells GlobeSt.com. “I’ve heard quotes on class A product rents at $55 to $65 per square foot, which is unheard of. The flip side is that it’s a tenant’s market for class C product.”
Although Orlando’s office market is weaker than other sectors, it is also gaining momentum even as the industrial market sees demand starting to outstrip supply. And Blackstone‘s pending $449.2 million acquisition of JW Marriott Grande and $262.8 million acquisition Ritz Carlton Grande demonstrate investor appetite for hotel product in the tourism-driven region.
GlobeSt.com will present a proactive and insightful look at the latest issues and trends of the Orlando regional market at its RealShare Central Florida 2015 event to be held on June 11 at The Citrus Club in Orlando from 7:30 am to 12:30 pm.
Check out the stories below to catch up on recent Orlando news as well as more detailed insights on those subjects. Also, don’t forget to check back daily for many more exclusive stories from sources on the local market.