market snapshot ORLANDO
By Natalie Keith
NEW OFFICE PLANS PROCEED AMID SUBLEASES
With a glut of subleases returning to the market, Orlando’s office
vacancy returned to double digits by the end of 2007—yet that has
not seemed to discourage plans for new buildings set to break
ground later this year.
Over one million sf of sublease space returned to the market
over the past year, more than twice as much as in 2006 and putting its vacancy rate at 10.5% by yearend, according to GVA Advantis.
“The economy shifted this past year putting many mortgage,
title and insurance companies out of business which all had a
prevalent existence in the Orlando market,” says Lisa Bailey, GVA
Advantis senior director.
Yet even as vacancy rose throughout 2007, so did rents. According to CB Richard Ellis, Downtown Orlando class A asking
rental rates increased nearly $2 per sf over the past year, from
$26.16 to $28.06, while suburban class A increased $1.54 per sf,
from $20.90 to $22.44.
Rising rents are encouraging new Downtown office projects
such as World Trade Center Orlando, a $200-million project set to
break ground soon on South Ivanhoe Boulevard near Interstate 4.
The pair of towers, measuring 25 and 28 stories each, will contain
at least 500,000 square feet of office and other commercial space.
Skyrise Development Group, the project’s Ft. Lauderdale-based
developer, claims 30% pre-leasing and intends to break ground
upon reaching 50%. Asking rents are in the mid-$20 range per sf,
with 10-year terms signed thus far including 20,000 sf by the Keys
Group and 30,000 sf by a trade showcase company.
J. Paul Reynolds, VP with CBRE in Orlando and the project’s
'JSTU 1BSL 4PVUI 'MPSJEB Get more room to grow
in Palm Beach County.
8*//& 3
National
Association of
Industrial & Office
Properties
2008 Awards
of Excellence
FIRSTPARK
South Florida
NJMFT
Take advantage of a rare opportunity
to establish a presence in one of the
nation’s hottest growth areas — Palm
Beach County — at a business park
that meets your industrial needs and
offers significant expansion potential.
t NJMMJPO T G PG OFX JOEVTUSJBM TQBDF
t 8JEF SBOHF PG JOEVTUSJBM GBDJMJUZ UZQFT
t "MM JOGSBTUSVDUVSF FOUJUMFNFOUT JO QMBDF
t -FBTF CVJME UP TVJU BOE TFMFDUFE MBOE TBMFT
Orlando
Tampa
100
St. Lucie
Martin
Palm Beach
Turnpike Interchange
Port of Palm Beach
Palm Beach Int’l Airport
Broward
Miami-Dade
Port Everglades
Port of Miami/Miami Int’l
(Fo8r in8for8mat)ion9an5d a5full-b1roc5hur1e, c5all:
www.firstindustrial.com/firstparksofla/
