REPORT: Orlando Office Construction Built To Suit More Often Than Most Of Florida

Aug 02, 2018 No Comments by

Metro Orlando is building more office space to suit businesses than any other region in the state, according to commercial real estate firm Cushman & Wakefield – and new construction is pushing Central Florida prices higher than anywhere else in the state.

Here are some more numbers from the company’s second-quarter Florida office-rental report:

7 percent

Rise in asking rents in Metro Orlando, the top increase in the state — as asking prices reached $26.11 per square foot. Tampa Bay checked in at 4.5 percent, while prices dropped 2.7 percent in Miami.


“In Orlando, increases are mainly due to new construction,” Cushman & Wakefield said in its report.

215,000 square feet

Amount of office space being built specifically for Metro Orlando businesses, about 65,000 more square feet than Miami – and a much higher percentage of such space than Miami at 28.5 percent to 14.4 percent. Only Broward County has a higher percentage than Orlando at 35.7 percent, but that represents just 91,240 square feet of space.

Here’s a breakdown of the total office space under construction in Florida’s top six markets:

  • Broward: 255,340 square feet, 64.3 percent speculative
  • Orlando: 685,744 square feet, 71.5 percent speculative
  • Miami: 1,059,026 square feet, 85.8 percent speculative
  • Tampa: 250,000 square feet, 100 percent speculative
  • Palm Beach: 224,000 square feet, 100 percent speculative
  • Jacksonville: 210,867 square feet, 100 percent speculative

1.3 percent

Amount of Metro Orlando rents compared with the pre-recession peak – which considerably trails the statewide average of 12.5 percent. South Florida markets are pushing rents highest past the previous peak, with Miami fueling that move at 17.9 percent.


Per-square-foot asking prices of Metro Orlando “trophy-class” office buildings, which have the best locations and are more exclusive than Class A space. The trophy premium in Orlando is 34 percent, a little less than the state average.


Source:  Orlando Sentinel


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