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

Nov 22
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 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 in Q3 2022

Total Asset Value: $38.6B
12-Month Sales Volume: $1.8B
Average Market Cap Rate: 6.4%
12-Month Market Sale Price Change / SF: +12.4%

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: 75%
User: 12%
Institutional: 6%
Private Equity: 6%
REIT / Public: 1%

Buyer Origin:

Local: 19%
National: 78%
Foreign: 3%

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: 48%
User: 23%
REIT / Public: 12%
Institutional: 14%
Private Equity: 3%

Owner Origin:

Local: 30%
National: 66%
Foreign: 4%

Orlando Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q3 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 Q3 2022 Provided Below

Orlando Retail Real Estate Report Q3 2022 - MMG Equity Partners

KEY RETAIL LEASE STATS: Orlando (Q3 2022)

  • Vacancy: 4.8% (Compared to 3.8% in Q1 2022)
  • Absorption: -212,586 (Compared to 223,557 in Q1 2022, -436,143 change)
  • Asking rate PSF: $26.18 (Compared to $25.36 in Q1 2022, +$0.82 change)

TOP RETAIL LEASING STATISTICS: Orlando (Past 12 Months)

12 Month Deliveries in SF: 1M 
12 Month Net Absorption in SF:
1.4M 
Vacancy Rate:
3.8%
12 Month Rental Growth: 7.0%

Q3 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. WaterStar Orlando – Osceola Outlying
Tenant:
Not Listed
Size: 183,478 SF
Space Type: Shopping Center
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed

3. Casselberry Exchange – Casselberry
Tenant:
BJs Wholesale Club
Size: 103,111 SF
Space Type: Shopping Center
Tenant Rep Co: LandQwest Commercial Real Estate
Leasing Rep Co: Foundry Commercial

4. 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

5. Citrus Tower Retail – Lake County
Tenant:
Precision Landscape Management
Size: 56,200SF
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 684 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 $241, and the average vacancy was 4.4%.

Sales Comparables: 684
Average Cap Rate:
6% 
Average Price/ SF:
$241
Average Vacancy at Sale: 4.4%

TOP RETAIL SALES TRANSACTIONS: Orlando (Q3 2022)

Top Transaction Highlight in Q3 2022: Millenia Plaza Phase I

1. Millenia Plaza Phase I (4601 – 4697 Millenia Plaza)
Price: $56,910,247
Size: 295,628 SF
Price/ SF: $193
Cap Rate: Not Listed
Vacancy: 0%

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

3. Winter Garden Regional Center
Price: $24,500,000
Size: 132,273 SF
Price/ SF: $264
Cap Rate: Not Listed
Vacancy: 21.2%

4. Osceola Village (3040 – 3086 Dyer Blvd)
Price: $24,304,496
Size: 98,136 SF
Price/ SF: $248
Cap Rate: Not Listed
Vacancy: 0%

5. Gateway Plaza (101 – 241 Towne Center Blvd)
Price: $23,600,000
Size: 218,250
Price/ SF: $540
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 113 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 nearly 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: 113
Total Size:
2,202,368 
Percent of Inventory:
1.5%
Pre-leased: 74.6%

RETAIL CONSTRUCTION PROJECTS: Orlando (Past 12 Months)

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

2. Clermont Hills 
Size: 130,000 SF
Completion Date: Q2 2023
Developer/ Owner: Not Listed
Stories: 1

3. Building B (4690 – 4722 Marigold Ave)
Size: 127,500 SF
Completion Date: Q2 2022
Developer/ Owner: Not Listed / Not Listed
Stories: 1

4. WaterStar Orlando (7586 W Irlo Bronson Memorial)
Size: 84,415 SF
Completion Date: Q4 2022
Developer/ Owner: Equinox Development Properties
Stories: 1

5. 7991 W Irlo Bronson Memorial
Size: 79,680 SF
Completion Date: Q4 2022
Developer/ Owner: Not Listed
Stories: 1

Data sources: MMG Equity Partners & CoStar


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