Orlando Retail Market Report
Investors Take Notice as Increased Tourism and Job Gains Fuel Retail Demand
Retail fundamentals held steady during health crisis. Orlando benefited from job growth that doubled the U.S. average prior to the pandemic, which translated to a level of resiliency during the health crisis. Despite unemployment rising to as high as 22.5 percent in 2020, retail vacancy in the market never exceeded the national level in any quarter during the past year. Widespread vaccinations allowed for tourism to return in the first half of 2021, which complimented job growth and demand for retail space in the metro. Over the past four quarters, net absorption has nearly doubled the previous year’s recording as the unemployment rate has dropped below 5 percent. Retail fundamentals should continue to improve going forward as population growth and household formation in Orlando are expected to be three times as fast as the U.S. average.