Supply
Orlando’s overall vacancy rate came down 20 basis points (bps) year-over-year (YOY), to 16.7% in Q3. Class A vacancy was slightly down 50 bps, with class B remaining level YOY. Occupancy gains were most pronounced in the 436 Corridor/Casselberry submarket with a vacancy rate of 14.0%, down 610 bps YOY. Overall market vacancy will continue to come down as Siemens is projected to occupy their 242,700 square feet (sf) space at 6876 Marwick Ln in Q1 2027 in the Airport/Lake Nona submarket. No new office supply is currently under construction, and no projects are slated to break ground as mixed-use development continues to dominate throughout the region. Barring any unforeseen economic factors, this should continue to aid the improvement of market fundamentals.
Demand
Overall net occupancy gains totaled near 85,000 sf in Q3 bringing year-to-date (YTD) total to over 233,000 sf, on pace for the first positive year since 2019. The Central Business District (CBD) continues to be the primary driver of net occupancy gains, accounting for 72.2% of total absorption in Q3 as occupiers prioritized centralized and amenity-rich locations. The largest move-ins of the quarter included Synchrony for 42,000 sf in Lake Mary, and the U.S. GSA office’s 33,000 sf in the 436 Corridor/Casselberry submarket. 2026 leasing activity continues to trail 2025, with total volume reaching over 1.3 million square feet (msf) through Q3, compared to 2.0 msf the previous year. This stands out due to 2025 office leasing activity being inflated by Siemens and Mitsubishi combining for almost 400,000 sf in Q3, with Siemens set to occupy their new headquarters in Q1 2027.
Pricing
Overall average asking rents across Orlando rose slightly to $26.74 per square foot (psf) in Q3. Among submarkets with 1.0 msf of inventory or more, Millenia/Metrowest/Windermere commanded the highest asking rents of $35.12 psf for Class A space, up 18.8% YOY. Class B asking rents grew by 10.1% YOY in the same submarket to $29.06 psf. This dynamic underlines the widening pricing gap region-wide between product quality with Class A asking rents 18.4% higher than Class B. Other submarkets that are performing strongly included Winter Park at 7.9% YOY to $31.68 psf and Lee Road Corridor at 6.9% YOY to $25.25 psf. Conversely, Maitland and Lake Mary/Heathrow asking rents fell by 4.5% and 2.3% YOY to $22.95 psf and $26.27 psf respectively, as leasing activity in those submarkets was dominated by higher tier space leaving Class B availabilities to weigh asking rents lower.
