Avison Young in Orlando
Avison Young opened its Orlando office in November 2014 through the firm’s acquisition of Morrison Commercial Real Estate. As a result of the acquisition, 11 members joined Avison Young, with Greg Morrison becoming Managing Director in Orlando. The Orlando office offers a full suite of services including tenant representation, agency leasing, asset and property management, project management and capital markets.
The Orlando agency leasing team has grown their portfolio to more than 5.5 million square feet in the Central Florida marketplace, managing and leasing both class A trophy office buildings and buildings in some of Orlando’s fastest-growing markets. Property Management was introduced to the market in 2015 and has grown to 3 million square feet under management in just two years.
Orlando’s capital markets team specializes in retail assets and is a part of the Florida Capital Markets Group which completed more than $500 million worth of transactions in 2016 for some of the largest global owners and operators of real estate, as well as local and entrepreneurial owners and developers.
Whether you are an owner, investor, occupier or developer, we deliver results aligned with your strategic business objectives, supporting real estate initiatives that add value and build a competitive advantage for your organization.
While Orlando is known for its unbeatable quality of life and subtropical climate, the metropolitan area has also recently been ranked by the U.S. Department of Labor as being #1 in the U.S. for job growth (2015), and as the second most competitive business location among large U.S. cities by KPMG (2016). From corporate headquarters to regional distribution centers, and from product manufacturing to high tech research, the region spans a dynamic economic spectrum.
Long recognized as a haven for tourism, Orlando’s economy has a surprisingly diversified business base, and several major international companies have a presence here. Orlando is the world capital of the modeling, simulation & training industry, and is the top producing region for engineers in the aviation, aerospace & defense industry. Orlando is also home to the world’s first international consortium for advanced manufacturing and research. Life sciences & healthcare are also growing here at exponential rates with more than 92,000 jobs and growing.
Major employers concentrated in Orlando include Walt Disney Company, Lockheed Martin, Siemens Energy, Mitsubishi-Hitachi Power Systems, L-3 Communications, Science Applications International Corporation (SAIC), Electronic Arts, Northrop Grumman, Darden Restaurants, Verizon Communications, Tupperware Brands Corp., American Automobile Association (AAA), Ruth’s Chris Steak House, and Deloitte, among many others. Orlando is also home to the U.S. operations of Germany’s Siemens Energy, Japan’s Mitsubishi Hitachi Power Systems, Spain’s Indra System, and Australia’s Adacel to name a few. In total, more than 150 international companies, representing about 20 countries, have facilities in Orlando.
Additionally, Orlando has one of the finest research and development parks in the United States, located adjacent to the University of Central Florida, the largest university in the country in terms of total enrollment. The university is also home to one of the nation’s top tech incubators.
Orlando's economic engine continues to impress as demonstrated by the sustained decline in the unemployment rate, solid market fundamentals, healthy leasing activity, and an increasingly active speculative development pipeline. Healthy improvement in the housing market has led to strong job gains in the construction sector and rental rates continue to tick upward in key submarkets. There were several key expansion announcements involving the financial services industry in Orlando at the close of 2016. Deloitte Consulting announced plans to invest an additional $24.6 million into the planned expansion of their U.S. Technology Delivery Center in the Lake Mary/Heathrow submarket, which will create an additional 850 jobs over the next four years. In the Lake Nona Area, KPMG (one of the largest accounting and professional services firms in the world) just closed on a 54-AC site and confirmed plans to construct a $430 million, 800,000-sf global training and conference center.
Orlando’s 62 million-square-foot retail market is characterized by healthy net absorption in key areas, diminishing leasing concessions, and a declining vacancy rate. New development is breaking ground throughout the metro area on a fairly restrained scale, and population growth, healthy consumer spending and record tourism are creating consistent demand for retail space.
The Metro Orlando industrial market consists of over 100 million square feetof bulk distribution, office/service center, warehouse and manufacturing space. Additionally, there is substantial development activity taking place proximate to Orlando International Airport, with significant recent projects by EastGroup, DCT Industrial Trust, Foundry Commercial and McCraney Property Company. There is also a significant manufacturing development underway in Osceola County. The 109,000-sf Florida Advanced Manufacturing Research Center (“FAMRC”) is expected to become a major economic driver for Osceola County as the first facility in Florida with the capability of providing a high-tech manufacturing platform. While a relative lack of large blocks of space in the market is fueling new construction activity, it is anticipated that new space under construction will only partly mitigate the pent-up demand as tenant interest remains steady and strong economic fundamentals continue to support business expansion.
The Metro Orlando investment real estate market has gained considerable traction from consistent domestic and international investor demand in recent years. Additionally, demand fundamentals remain place for rent and NOI growth, and most key industries in the region have experienced job growth. Investment interest continued at a steady pace and significant capital continued to chase acquisition opportunities in Orlando throughout 2016. During the trailing 12 months ending December 2016, there were 196 office, industrial and retail sales of properties $2.5 million and higher, totalling $2.3 billion and just over 17 million sf.