Navigating availability and pricing trends in Orlando’s office market - United States
Navigating availability and pricing trends in Orlando’s office market
Orlando's office sector maintains robust market fundamentals amid the ongoing cycle. The enduring effects of the pandemic persist, prompting companies to redefine office usage, with many embracing the permanence of the hybrid work model.
Despite the recent increase in available office space, asking rates remained resilient at $27.33 FS per square foot in 2023, reflecting a 13% growth since 2020. This provides optimism for market owners, indicating that office pricing is competitive and not inflated.
During 2023, sublease availability began to stabilize, contracting 17% compared to 2022, which indicates the wave of companies shedding unused space has stopped for now. Direct availability surpassed 7 million square feet by the close of 2023, marking a 33% increase from pre-pandemic levels, primarily concentrated in suburban submarkets.