What's the Future of Orlando's CRE?

What is the future of Orlando’s commercial real estate market? GlobeSt.com caught up with Bill Moss, senior managing director for CBRE Orlando, to discuss local market trends and which sectors are performing the best.

Moss is a good person to ask. He’s a member of the Orlando Economic Forum, a group of local industry leaders dedicated to promoting economic development in the four-county Orlando region.

GlobeSt.com: How would you describe the current state of the commercial real estate market in Orlando.
Moss: The Orlando market is in the midst of a strong recovery phase due largely to a healthy job market and strong population growth. We’re seeing strong sales and leasing activity, decreasing vacancy rates and increasing rental rates across all product types.
Orlando has billions of dollars’ worth of real estate developments underway. Overall, we’ve got more than 1 million additional square feet of construction in the works for the downtown business district alone.

Among the transformative new developments: The 650-acre health and life sciences park known as Lake Nona Medical City recently opened, and will be a premier destination for medical care, research and education. The planned All Aboard Florida train connecting Orlando to Miami, slated to open in 2017 and attract 2.5 million passengers per year, is also driving development. These kinds of projects are helping the city realize its full potential.

GlobeSt.com: Which sectors are shining in this cycle?

Moss: Industrial and multifamily are doing very well. Central Florida’s emergence as a logistics hub has created a red hot market for well-located, well-designed warehouse space.

Local real estate occupied by e-commerce retailers, parcel delivery firms, and transportation/logistics companies hit an all-time high in 2014. This new demand will result in a tighter market for tenants looking for class A industrial buildings.
Multifamily is reaping the benefits of Orlando’s strong job and population growth. The market has already seen over $1.2 billion in sales so far this year, on pace to break the $2 billion mark by the end of the year.

Retail development is heating up as well. The Orlando tourist and convention area market is especially bursting with new retail projects like the $300 million Skyplex indoor entertainment complex.