Orlando is going through a movement of an “increasing influence” of Millennials in the market. For real estate professionals, Orlando is “experiencing the influence of a Millennial workforce that is shifting the needs and demands for commercial real estate and the broader economy” in Central Florida.
At Jones Lang LaSalle’s Pulse360 event in Orlando last October, institutional property owners, lenders, developers and top commercial real estate brokers gathered together for a panel discussion on what lies ahead for Orlando.
Orlando has become one of the hottest markets for Millennials. “Orlando needs to become the center of the world for something unique,” Mr. Lipsey of Parkway Properties told attendees. “If we could develop a tech-centered but unique industry, it could be a huge catalyst for Orlando.”
For example, the 68-acre transit-oriented development Creative Village that is planned in downtown Orlando that aims to create a unique live-work-play community with college campuses and high-tech companies, according to JLL. Millennials are presently driving the demand for rental housing. In downtown Orlando alone, more than 3,000 units are under construction, and also driving demand for services on the retail front.
“All the Millennials want to be downtown,” a broker told the Orlando Sentinel, “as well as business professionals who get tired of driving and empty nesters who like the vibrancy of downtown and don’t want the big house and the big yard.”
JLL also reported that Millennials total spend was nearly $600B annually. By 2020, it is estimated that spending will be accounted for as much as $1.4 trillion for this generation.
Some of the key property development attributes which Millennials seek out today include technology, customization, energy efficiency, and better designs. For commercial property real estate developers, incorporating elements such as pop up shops and green shopping are among the trends which relate to Millennial taste in seeking out new properties.
There are currently 80 million millennials living in the United States. A new study from SmartAsset has identified that millennials in Orlando benefit to lower tax rates. In San Francisco, residents pay 26.84 percent in taxes, the highest rate of any city in the country where Orlando did not even make the top 25.
In the last decade, significant growth in the service sector of the labor market such as in business and professional services has been happening. The millennial consumption emphasizes quality of life. These requirements include driven demands by millennials in areas such as technology, leisure, travel and personal services. With the technology-driven movement, the shift has put focus on a millennial-oriented economy.