In Orlando, urbanization has sparked a popular interest with developers to build and acquire more office space — namely, urbanization’s across the country and working on development on the city’s skyline is in demand.
Orlando skyline development is not the same as it was post-recession, in fact, the area has gotten much younger with millennials over the years, according to a RealtyTrac analysis of Census Bureau data.
The analysis by Jones Lang LaSalle (JLL) reviewed the Skylines in major markets across the nation annually. Central Business Districts and Downtown areas of the US cities were top choices for tenants’ for office space.
Additionally, a demand for unique offices and urbanized neighborhoods were growing as some of JLL’s shared trends among markets. A growing millennial workforce has created this new demand for unique offices. Stay updated with Retail Solutions Advisors Development & Redevelopment news and financial services.
The Orlando Skyline Recovers
Leasing activity around Orlando’s skyline is beginning to pick up again. Jones Lang LaSalle’s Managing Director John Gilbert stated, “Rental rates for all CBD buildings are expected to increase over the next 12 months as the market continues to tighten.” According to the RealtyTrac analysis of Census data, the number of millennials in Orange, Seminole, Lake and Osceola counties grew by 27 percent during 2008 to 2013.
Orlando’s tenant requirements in the overall market remain focused on the downtown CBD, noted JLL. Are commercial real estate developers executing new developments? JLL indicated that Red Lobster recently relocated its headquarters from the suburban market to downtown in a 91,000-square-foot space downtown. From 2010 through 2014, the amount of space leased in the Skyline averaged roughly 589,000 square feet per year compared to an average of about 344,000 square feet per year during 2003 to 2007, according to JLL’s analysis.
Mr. Gilbert zeroed in on Orlando’s development of its skyline and indeed “looks forward to new development.” “Only two spaces over 40,000 square feet are currently available. Such scarcity of large contiguous blocks of space will force new tenants to the market to consider proposed new office towers,” Mr. Gilbert commented.
According to RealtyTrac, Orlando has been designated as a market geared more to buyers than renters. The company highlighted that Orlando-area buyers spend an estimated 32 percent of their earnings on housing costs while renters in the region spend an average of 38 percent with both spending levels exceeding a benchmark of nearly 30 percent. Currently, over 20 million residents are living in Florida’s sunshine state.know more about Key Investment Strategies Using REIT and which groups would be the best for commercial investor.