Another Quarter of Moderate Demand Growth
Central Florida’s office market reported net positive absorption of more than 82,000 square feet in the third quarter of 2019. This was a modest decline from the second quarter, when a pick-up in demand helped push year-to-date absorption to almost 400,000 square feet, beating out South Florida for the strongest growth in Florida. Overall vacancy dropped another 10 basis points from the previous quarter, pushing occupancy up to 93.5%, its highest level recorded during this economic cycle. Occupancy also remained level from one year ago, as the market held level over the last 12 months.
- Central Florida’s office market saw reserved growth during third-quarter as demand outpaced supply for the third consecutive quarter, pulling in a healthier performance than seen one year ago.
- Tampa barely led the region in positive net absorption during the third quarter, while Orlando’s office market still posted the strongest year-to-date numbers in growth.
- Leasing activity picked up from the previous quarter, but overall deals for 2019 remained below what was transacted this time last year.
- Average rents continued their steadily climb upward almost reaching the $24.00/SF mark.
- No new construction projects broke ground in the region during third quarter.