Orlando Office Market Report
Orlando Office Sector Marks Turning Point as Job Growth Sets Record Pace
Demand turned positive in the second quarter. Uncertainty from the pandemic diminished leasing activity, which prompted over 1.6 million square feet of negative net absorption from July 2020 to March 2021. Vacancy increased 300 basis points during that span. However, Florida reopened its economy sooner than most states, which accelerated job growth in the metro. Office users responded by absorbing approximately 670,000 square feet in the second quarter, contracting metrowide vacancy 60 basis points to 12.9 percent, among the lowest rates in the country. Furthermore, local firms pre-leased more than 1 million square feet during the period, highlighting the optimistic outlook. That momentum is expected to continue throughout the second half, although not enough to entirely offset the rise in availability during the nine-month period ending in March.