Check out our flippable issue above or visit https://heyzine.com/flip-book/63f05778dd.html read below our summary
Orlando’s Commercial Real Estate Landscape
As we enter the final quarter of 2024, Beyond Commercial, Orlando’s premier commercial real estate brokerage, is excited to share our latest market insights and company updates. Our October 2024 Beyond Bulletin offers a comprehensive look at the dynamic Orlando real estate market, showcasing emerging trends, exciting developments, and valuable opportunities for investors and businesses alike.
Founder’s Message: Embracing Change and Opportunity
Amy Calandrino, SIOR, CCIM, CEO and Founding Principal of Beyond Commercial, sets the tone for this quarter’s bulletin with a message of resilience and optimism. As we navigate the challenges of Q4, including the anticipated Hurricane Milton, Amy reflects on the strength of the Orlando community and the unwavering dedication of the Beyond Commercial team.
With the company’s 14th anniversary approaching on October 26, 2024, Amy expresses gratitude for the trust placed in Beyond Commercial by clients and partners over the years. This milestone serves as a testament to the firm’s commitment to uncovering hidden opportunities and delivering tailored solutions in the Orlando commercial real estate market.
Orlando Market Overview: A Hub of Growth and Innovation
Luxury Hotel Sector Boom
Orlando’s commercial real estate market is experiencing robust growth as we approach the end of 2024. A significant focus is on the luxury hotel sector, with several high-profile projects in development:
- AIC Hotel Group’s 50-acre resort featuring a Nobu Hotel
- Marriott’s W Hotel on Universal Boulevard
Both properties are set to open in 2026, signaling a bright future for Orlando’s hospitality industry. These developments are expected to drive increased demand for complementary services, including upscale dining, retail, and event spaces.
Population Growth and Housing Demand
The city’s continued population growth is fueling demand for housing, particularly in rapidly developing areas like Lake Nona and Winter Garden. This demographic shift is creating new opportunities for residential real estate investors and developers.
Retail Expansion
Orlando’s retail sector is also seeing significant growth, with 52 properties currently under construction, totaling nearly 1.5 million square feet of new retail space. Large-scale mixed-use projects like City Center West Orange are set to enhance both residential and visitor experiences, combining retail, dining, and entertainment options.
Transportation Improvements
Major infrastructure upgrades, including the I-4 Ultimate project and SunRail expansions, are improving accessibility throughout the Orlando metro area. These enhancements are expected to support continued growth and development across various real estate sectors.
Healthcare and Medical Office Space
Lake Nona’s Medical City continues to be a cornerstone of Orlando’s healthcare sector, driving increased demand for medical office space. This trend presents opportunities for investors and developers specializing in healthcare-related real estate.
Sustainable Development
Emerging projects like the $700 million Packing District are shaping Orlando’s future, blending residential, retail, and recreational spaces into sustainable, mixed-use developments. These initiatives reflect a growing focus on creating livable, walkable communities that cater to modern lifestyle preferences.
Sector-Specific Insights
Industrial Real Estate
Orlando’s industrial real estate market is experiencing a period of adjustment as we head into Q4 2024:
- Nearly 16 million square feet of industrial space added in 2023 and 2024
- Strong leasing activity for spaces under 25,000 square feet
- Challenges for larger properties (250,000 square feet or more) with vacancy rates rising to 10%
- Smaller spaces maintaining low vacancies under 3.6%
- Rent growth slowing from 15.8% in Q1 2023 to 8% in Q3 2024
- Market performance remains above national averages
Office Market
The office sector continues to face challenges in 2024:
- Leasing activity down by approximately 15%
- Vacancy rates steady at 9.4%, below the national average
- Rent growth decelerated to 2.7%, in line with the broader Florida office market
- Medical office space outperforming traditional office spaces
Retail Market
Orlando’s retail market remains strong in Q4 2024:
- Space availability tight at 3.9%, close to record lows
- Absorption increased by 180% year-over-year, totaling nearly 2.6 million square feet
- Rent growth slowed from 7.7% in 2023 to 4.6%, but still above the national average
- Limited new development expected to maintain low vacancy rates and strong demand
Multifamily Market
The multifamily sector shows strong renter demand but faces some challenges:
- Nearly 14,000 units absorbed in the last 12 months
- 16,000 new units delivered, leading to increased vacancy rates of 10.1%
- Oversupply of luxury (4 & 5 Star) units, with vacancy at 12%
- Negative rent growth of -1% annually, but signs of recovery expected by late 2024 or early 2025
Student Housing
The student housing market near the University of Central Florida (UCF) remains robust:
- Over 73,000 students and limited on-campus accommodations driving demand
- 19,000 purpose-built student beds and 4,400 multifamily bedrooms near UCF
- Rent growth for student housing averaging 20% higher than market-rate apartments
- Strong occupancy rates at nearly 97%
- Continued enrollment growth expected to sustain demand
Hospitality Sector
Orlando’s hotel market is showing signs of recovery:
- 2.4% decline in RevPAR year-to-date in mid-2024
- Recovery expected in late 2024 with projected 0.6% RevPAR growth
- Strong hotel pipeline with over 2,000 rooms set for delivery in 2024 and nearly 3,000 more by 2025
- Opening of Epic Universe theme park in 2025 expected to boost demand
- Group travel, particularly at the Orange County Convention Center, providing stable occupancy
Beyond Commercial: 14 Years of Excellence
As Beyond Commercial approaches its 14th anniversary on October 26, 2024, the company reflects on its journey of growth and success. Since its founding in 2010, Beyond Commercial has served hundreds of businesses, treating each deal with the utmost importance and dedication.
The company’s success is built on a foundation of client-focused service, market expertise, and a commitment to uncovering hidden opportunities in the Orlando commercial real estate market. Beyond Commercial specializes in:
- Consulting Services
- Owner Representation
- Occupier Representation
- Development Services
Featured Success Story: Family First Wellness Center
The Beyond Bulletin highlights a recent success story featuring Family First Wellness Center, showcasing the company’s ability to deliver tailored solutions for its clients:
- Client: Dr. Kelly Fredricks, DC, CACCP of Family First Wellness Center
- Challenge: Finding a new location to accommodate an expanding chiropractic practice
- Solution: A 2,854-square-foot office at 307 Cranes Roost Boulevard in Altamonte Springs, Florida
- Outcome: Successful relocation to a cohesive, accessible space that supports the practice’s growth and patient care goals
This case study demonstrates Beyond Commercial’s commitment to understanding client needs, providing expert guidance, and delivering results that align with long-term business objectives.
Looking Ahead: Orlando’s Bright Future
As we move towards the end of 2024 and look ahead to 2025, Orlando’s commercial real estate market continues to present exciting opportunities across various sectors. The city’s strong population growth, thriving tourism industry, and ongoing infrastructure improvements position it as a key market for investors and businesses seeking success in Florida.
Key factors driving Orlando’s future growth include:
- The opening of Epic Universe theme park in 2025
- Continued expansion of Lake Nona’s Medical City
- Development of sustainable, mixed-use projects like the Packing District
- Ongoing transportation improvements enhancing citywide accessibility
- Strong demand in the multifamily and student housing sectors
Conclusion: Partnering for Success in Orlando’s Real Estate Market
As Orlando’s commercial real estate landscape continues to evolve, Beyond Commercial remains committed to providing expert guidance, market insights, and tailored solutions to help clients navigate this dynamic environment. With 14 years of experience and a deep understanding of the local market, Beyond Commercial is well-positioned to help investors and businesses unlock hidden opportunities and achieve their real estate goals.
Whether you’re looking to lease, buy, or sell commercial property in Orlando, the Beyond Commercial team is ready to assist you with their concierge, consultative approach. By staying connected and leveraging the expertise of Beyond Commercial, you can position yourself for success in one of Florida’s most exciting and rapidly growing real estate markets.
To learn more about Beyond Commercial and explore how we can help you achieve your commercial real estate objectives, visit our website at www.beyondcommercial.com or contact us directly at 407-641-2221 or hello@beyondcommercial.com