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Market Report

Orlando Office Market Report

4Q 2023

Nation-Leading Household Growth Limits Effects of
Class A Volatility on Orlando’s Office Landscape

Medical segment's space demand stands out. Orlando’s household count expanded by 5.2 percent, setting the highest pace among major U.S. metros over the year ended in June. Recent growth motivated expansions among essential household service providers, such as law or financial advisors, and health care administrators. Health services providers, specifically, absorbed a net of 156,000 square feet of medical offices in that span, keeping the sector’s vacancy rate below the long-term mean of 10.0 percent. Sustained space demand in the segment is, however, contrasting net relinquishments of Class A properties, which noted a record vacancy rate of 21.5 percent in June. With operators already easing top-tier asking rates by 0.9 percent on average in that span, the metro’s mean marketed rent is projected to bump down this year for the first time since 2011. 
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