Recently, I reviewed Xceligent’s Quarter 2 2017 Office Market report. Here are a few highlights:
The unemployment rate decreased 0.6 percentage points (pps) from 4.3% in May 2016 to 3.7% in May 2017.
Direct vacancy rates dropped 0.3 pps to 9.8% during the same time period.
Weighted average asking rents in all classes increased 4.5% year-over-year, recording $21.84 per square foot (psf) at the close of 2Q 2017.
Class B space led all building classes in absorption for the quarter, recording positive 137,611 sf.
Altamonte submarket YTD Net Absorption is -187,717 sf with a 21.9% vacancy rate.
NW Orange, S Orlando – OCP, SW Orange, and Winter Park’s vacancy rates are at 3.1%, 20.1%, 5.7%, and 4.8% respectively.
Orlando Central Business District Class A office space weighted average asking rental rate is $26.90 down from $27.17 last quarter while Winter Park’s same product type is at $32.30 up from $30.05 last quarter and up about $6.50 per sf since Q2 2016.
Lake Mary had the most reported large deals with 32,108 sf (undisclosed tenant), 30,628 sf (The Newport Group), and 19,100 sf (Merrill Lynch).