Orlando Retail Real Estate Summary: Leases, Sales & Construction Projects

May 27
Orlando Retail Real Estate Summary: Leases, Sales & Construction Projects

Market Snapshot for Orlando Retail Real Estate

We’ve taken a number of the key stats for Orlando retail real estate and broken them down below. The retail real estate report is updated every quarter by our in-house commercial real estate experts. First, it is important to give some context to the reasons why Orlando’s retail is doing well currently. It’s no secret that Florida has experienced a population boom during the last few years thanks to a number of economic and lifestyle factors:

1) It is very tax-friendly compared to most states in the USA.

2) Many retired folk from around the country come to live in Florida.

3) It was one of the more business-friendly states during the pandemic.

4) The United States is witnessing a dramatic shift in population from densely populated stats, such as New York and California to states like Florida and Arizona.

5) It is well known for its consistently good weather.

To further expand upon this population growth in the context of Florida, according to the World Population Review, Florida is #7 nationwide for population growth throughout 2021 with a growth of 1.1% overall. Additionally, The Villages, FL (which is one hour NW of Orlando) was found to be the fastest growing metro area nationwide from 2010 to 2020. Of course, population growth is not the only factor that ties into retail real estate, or commercial real estate as a whole, but it is certainly one of the best indicators of where money is going to be spent.

View our commercial properties in Florida to see what real estate assets are available for lease / sale.

Before we get into the specific statistics for Orlando’s retail real estate market in Q1 2022, let’s give a bird’s eye view for the overall capital market figures to give some context to the region’s retail sector.

Orlando Retail Capital Markets Statistics

Total Asset Value: $35.2B
12-Month Sales Volume: $1.6B
Average Market Cap Rate: 6.7%
12-Month Market Sale Price Change / SF: +9.1%

Orlando Retail Real Estate Sales Volume by Buyer Type & Origin (Past 12 Months)

Below are the buyer types and their origins, i.e.: local, national, or international investors of retail properties in Orlando.

Buyer Type:

Private: 78%
User: 10%
Institutional: 7%
Private Equity: 3%
REIT / Public: 2%

Buyer Origin:

Local: 31%
National: 65%
Foreign: 4%

Orlando Retail Real Estate Asset Value by Owner Type & Origin (Past 12 Months)

Below are the owner types and the origins of retail property owners in Orlando broken down by their percentage of representation.

Owner Type:

Private: 49%
User: 23%
REIT / Public: 9%
Institutional: 15%
Private Equity: 4%

Owner Origin:

Local: 31%
National: 65%
Foreign: 4%

Orlando Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q1 2022

A summary of the statistical highlights, latest retail transactions, vacancy / lease trends, and current market activity for Central Florida focusing on Orlando.

Full List of Top Transactions for Q1 2022 Provided Below

Orlando Retail Real Estate Report Q1 2022 - MMG Equity Partners

KEY RETAIL LEASE STATS: Orlando (Q1 2022)

  • Vacancy: 4.8%
  • Absorption: 223,557
  • Asking rate PSF: $25.36

TOP RETAIL LEASING STATISTICS: Orlando (Past 12 Months)

12 Month Deliveries in SF: 934,000 
12 Month Net Absorption in SF:
2.1M 
Vancancy Rate:
3.7%
12 Month Rental Growth: 7.2%

Q1 2022 TOP LEASING TRANSACTIONS: Orlando (Past 12 Months)

1. Universal Epic Universe – Tourist Corridor
Tenant: Universal Epic Universe
Size: 4,791,600 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

2. Casselberry Exchange – Casselberry
Tenant:
BJs Wholesale Club
Size: 62,725 SF
Space Type: Shopping Center
Tenant Rep Co: LandQwest Commercial Real Estate
Leasing Rep Co: Foundry Commercial

3. Orlando Fashion Square – 436 Corridor
Tenant:
Spirit Halloween
Size: 62,725 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Orlando Fashion Square

4. O-Town West – Tourist Corridor
Tenant:
Publix
Size: 50,248 SF
Space Type: Shopping Center
Tenant Rep Co: Unicorp National Development
Leasing Rep Co: Unicorp National Development

5. Sodo Shopping Center – South Orange 
Tenant:
LA Fitness
Size: 49,875SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: JLL

 

TOP RETAIL SALES STATISTICS: Orlando (Past 12 Months)

Over the course of the past 12 months there have been 770 total retail real estate transactions in Orlando with an average cap rate of 6%. The average price per square foot at the time of sale was $264, and the average vacancy was 4.4%.

Sales Comparables: 770
Average Cap Rate:
6% 
Average Price/ SF:
$264
Average Vacancy at Sale: 4.4%

TOP RETAIL SALES TRANSACTIONS: Orlando (Q1 2022)

Top Transaction Highlight in Q1 2022: Williamsburg Downs Shoppes

1. Williamsburg Downs Shoppes
Price: 
$28,800,000
Size:
109,336 SF
Price/ SF: 
$263
Cap Rate:
Not Listed
Vacancy:
0%

2. Gateway Plaza (101 – 241 Towne Center Blvd)
Price: $23,600,000
Size: 218,250
Price/ SF: $540
Cap Rate: Not Listed
Vacancy: 0%

3. Shoppes at Nona Place (13000 Narcoossee Rd)
Price: $19,566,547
Size: 36,250 SF
Price/ SF: $540
Cap Rate: Not Listed
Vacancy: 0%

4. 120 International Pky
Price: $18,200,000
Size: 101,392 SF
Price/ SF: $180
Cap Rate: Not Listed
Vacancy: 0%

5. Maitland City Centre (120 Independence Ln)
Price: $17,958,743
Size: 32,516 SF
Price/ SF: $552
Cap Rate: Not Listed
Vacancy: 0%

 

Orlando Retail Real Estate Summary - MMG Equity Partners

RETAIL CONSTRUCTION PROJECTS STATISTICS: Orlando (Past 12 Months)

There are currently 110 retail properties under construction in the Orlando market representing nearly 2.5M square feet of new product. This represents 1.5% of the total retail real estate inventory and over 75% of the total space is pre-leased.

Below the stats you’ll find the top-5 largest retail projects currently under development.

Properties Currently Under Construction: 110
Total Size:
2,268,508 
Percent of Inventory:
1.5%
Pre-leased: 75.2%

RETAIL CONSTRUCTION PROJECTS: Orlando (Past 12 Months)

1. Orlando Gateway Village
Size: 468,270 SF
Completion Date: Q2 2022
Developer/ Owner: Not Listed
Stories: 4

2. City Center West Orange
Size: 200,000 SF
Completion Date: Q1 2024
Developer/ Owner: City Center West Orange
Stories: 2

3. Winter Garden’s Newest
Size: 122,373 SF
Completion Date: Q3 2022
Developer/ Owner: Not Listed / BLF Realty, P.A.
Stories: 1

4. Building 5
Size: 78,400 SF
Completion Date: Q4 2022
Developer/ Owner: Not Listed
Stories: 2

5. Shoppes at Trelago
Size: 65,000 SF
Completion Date: Q4 2022
Developer/ Owner: Foundry Commercial / Harbour Retail Partners
Stories: 1

Data sources: MMG Equity Partners & CoStar


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