Metro Orlando is building
more office space to suit businesses than any other region in Florida, which is driving prices higher.
Metro Orlando is building more office space to suit businesses than any other region in the state, according to commercial real estate firm Cushman & Wakefield — and new construction is pushing Central Florida prices higher than anywhere else in the state.
Here are some more numbers from the company’s secondquarter Florida office-rental report:
7 percent
Rise in asking rents in Metro Orlando, the top increase in the state — as asking prices reached $26.11 per square foot. Tampa Bay checked in at 4.5 percent, while prices dropped 2.7 percent in Miami.
“In Orlando, increases are mainly due to new construction,” Cushman & Wakefield said in its report.
215,000 square feet
Amount of office space being built specifically for Metro Orlando businesses, about 65,000 more square feet than Miami — and a much higher percentage of such space than Miami, at 28.5 percent to 14.4 percent. Only Broward County has a higher percentage than Orlando, at 35.7 percent, but that represents just 91,240 square feet of space.
Here’s a breakdown of the total office space under construction in Florida’s top six markets:
Miami: 1,059,026 square feet, 85.8 percent speculative
Orlando: 685,744 square feet, 71.5 percent speculative
Broward: 255,340 square feet, 64.3 percent speculative
Tampa: 250,000 square feet, 100 percent speculative
Palm Beach: 224,000 square feet, 100 percent speculative
Jacksonville: 210,867 square feet, 100 percent speculative
1.3 percent
Amount of Metro Orlando rents compared with the prerecession peak, which considerably trails the statewide average of 12.5 percent. South Florida markets are pushing rents highest past the previous peak, with Miami fueling that move at 17.9 percent.
$35
Per-square-foot asking prices of Metro Orlando “trophy-class” office buildings, which have the best locations and are more exclusive than Class A space. The trophy premium in Orlando is 34 percent, a little less than the state average. Got a news tip about taking care of your money, or jobs and careers in Central Florida? wzimmerman@tronc.com or Twitter, @ZMediaWorks