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

Nov 29
Orlando Retail Real Estate Summary: Leases, Sales & Construction Projects

Market Snapshot for Orlando Retail Real Estate

We’ve taken a number of the essential statistics for Orlando retail real estate and broken them down below in our report. 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 Q3 2023, 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 in Q3 2023

Total Asset Value: $42.7B
12-Month Sales Volume: $1.2B
Average Market Cap Rate: 6.3%
12-Month Market Sale Price Change / SF: +8.2%

 

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: 12%
Institutional: 7%
Private Equity: 1%
REIT / Public: 2%

Buyer Origin:

Local: 18%
National: 81%
Foreign: 1%

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: 47%
User: 23%
REIT / Public: 11%
Institutional: 15%
Private Equity: 4%

Owner Origin:

Local: 30%
National: 67%
Foreign: 3%

Orlando Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q3 2023

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 Q3 2023 Provided Below

Orlando Retail Real Estate Report Q3 2023 - MMG Equity Partners Miami CRE

KEY RETAIL LEASE STATS: Orlando (Q3 2023)

  • Vacancy: 3.3% (Compared to 3.8% in Q2 2023)
  • Absorption: -69,867 (Compared to -88,177 in Q2 2023, -18,310 change)
  • Asking rate PSF: $28.53 (Compared to $27.46 in Q2 2023, +$1.07 change)

TOP RETAIL LEASING STATISTICS: Orlando (Past 12 Months)

12 Month Deliveries in SF: 1.4M 
12 Month Net Absorption in SF:
1.8M
Vacancy Rate:
3.3%
12 Month Rental Growth: 7.5%

Q3 2023 TOP LEASING TRANSACTIONS: Orlando (Past 12 Months)

1. Orlando Fashion Square – 436 Corridor
Tenant:
Dillard’s
Size: 88,892 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

2. 1440 N Alafaya Trl – West University
Tenant:
Floor & Decor
Size: 75,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: BluRock Commercial Real Estate

3. West Oaks Mall – West Colonial
Tenant: Not Listed
Size: 70,066 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Moonbeam Leasing

4. Formosa Gardens Village – Osceola Outlying
Tenant:
Crush Yard Pickleball Club
Size: 50,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: SRS Real Estate Partners

5. Starbucks and Dental Care of Minneola – Lake County
Tenant:
Publix
Size: 50,000 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

 

TOP RETAIL SALES STATISTICS: Orlando (Past 12 Months)

Over the course of the past 12 months there have been 434 total retail real estate transactions in Orlando with an average cap rate of 5.9%. The average price per square foot at the time of sale was $260, and the average vacancy was 5.0%.

Sales Comparables: 434
Average Cap Rate:
5.9% 
Average Price/ SF:
$260
Average Vacancy at Sale: 5.0%

TOP RETAIL SALES TRANSACTIONS: Orlando (Q3 2023)

Top Transaction Highlight in Q1 2023: WaterStar Orlando for $28.4M

1. WaterStar Orlando (7586 W Irlo Bronson Memorial)
Price: $28,440,000
Size: 79,680 SF
Price/ SF: $357
Cap Rate: 6.2%
Vacancy: 9.4%

2. The Grove at Winter Park (4270 Aloma Ave)
Price: $24,700,000
Size: 112,292
Price/ SF: $220
Cap Rate: Not Listed
Vacancy: 2.3%

3. Genesis Health Clubs (8701 Maitland Summit Blvd)
Price: 
$22,820,600
Size:
362,813 SF
Price/ SF: 
$63
Cap Rate:
Not Listed
Vacancy:
3.0%

4. Summer Bay Shopping Center (17445 US Highway 192)
Price: $19,750,000
Size: 77,770 SF
Price/ SF: $254
Cap Rate: Not Listed
Vacancy: 0%

5. Piedmont Plaza (2300 – 2444 E Semoran Blvd)
Price: $18,127,941
Size: 122,590 SF
Price/ SF: $148
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 59 retail properties under construction in the Orlando market representing a little over 1.5M square feet of new product. This represents 1.1% of the total retail real estate inventory and over 72.8% 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: 59
Total Size:
1,689,692
Percent of Inventory:
1.1%
Pre-leased: 72.8%

RETAIL CONSTRUCTION PROJECTS: Orlando (Past 12 Months)

1. 3251 Margaritaville Blvd 
Size: 200,000 SF
Completion Date: Q4 2023
Developer/ Owner: Not Listed
Stories: 1

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

3. Costco (State Road 50)
Size: 151,000 SF
Completion Date: Q4 2023
Developer/ Owner: Not Listed / Not Listed
Stories: 1

4. Building A (4730 – 4750 Marigold Ave)
Size: 79,247 SF
Completion Date: Q4 2023
Developer/ Owner: Not Listed
Stories: 1

5. Hammock Ridge Road
Size: 88,633 SF
Completion Date: Q4 2023
Developer/ Owner: Not Listed / Not Listed
Stories: 1

 

Data sources: MMG Equity Partners & CoStar

 

Florida Retail Real Estate Reports

We also provide retail real estate reports for other regions of Florida.

Miami Retail Real Estate Report

Tampa Retail Real Estate Report


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