Supply
Orlando's retail market continued operating under increasingly tight supply as development activity remained constrained, limiting options for expanding retailers despite strong tenant demand. Nearly 1.0 million square feet (msf) have been delivered over the past 12 months with only 73,700 square feet (sf) remaining available for lease. Dick’s Sporting Goods and Total Wine & More accounted for the largest share of deliveries. Nearly 835,000 sf remained under construction across 42 properties, 65.0% of which was preleased. The Osceola Outlying submarket holds the largest pipeline at 274,000 sf, followed by the Downtown Orlando submarket with 126,000 sf and the NW Orange Outlying submarket at 99,000 sf and the Lake Nona West submarket had the 405,000-sf community center anchored by Target, Nordstrom Rack, the largest project currently under construction.
Demand
Retail demand remained positive but moderated over the past year, with Orlando recording approximately 198,000 sf of occupancy gains year-to-date (YTD), compared with roughly 490,000 sf in 2025. Total leasing volume declined slightly to 3.9 msf YTD, down from the 4.1 msf leased during the same period one year ago. Limited availability of new high-quality space continued to restrict expansion opportunities. Four of the five largest leases signed over the past year were in projects not scheduled to deliver until 2027, and lease sizes in newer properties averaged more than 30.0% above the market average. Malls, power centers and strip centers were net givers of space, recording occupancy losses of roughly 214,000 sf, 135,000 sf and 116,000 sf, respectively, which pushed mall vacancy to 7.0% and power center vacancy to 6.8%.
Pricing
With supply constrained and demand moderating, rent growth has remained solid. Average asking rents reached $31.19 per square foot (psf) as annual rent growth measured 2.6% year-over-year (YOY), compared with 1.7% nationally. Orlando continued to lead Florida’s major retail markets in rent performance and ranks among the strongest nationally. Among property types with over 10.0 msf, power centers recorded the strongest growth at 3.5% YOY, while malls commanded the highest asking rents at $43.69 psf. Rents have increased nearly 25.0% since year-end 2021 and are projected to grow in the 3.0% range through much of 2027, reflecting the Metro’s population growth, expanding consumer base and persistent shortage of modern retail product.
Investment Sales
Investor interest in Orlando's retail market remained resilient, supported by steady rent growth, expanding retail concepts and a rapidly growing consumer base. Orlando's combination of migration, strong household growth and an emphasis on tourism-driven spending continues to drive growth in the retail sector. General retail and neighborhood centers accounted for roughly 86.0% of YTD transaction volume, reflecting continued demand for necessity-based and single-tenant assets. Sales volume reached approximately $1.4 billion YTD across 444 transactions, nearing the $1.5 billion recorded in full-year 2025. Since 2023, transaction volume has totaled approximately $5.0 billion. General retail led with approximately $772.0 million across 316 transactions (53.6% of volume), followed by neighborhood centers at $464.0 million across 76 deals (32.3%).
Average pricing reached approximately $284 psf, with cap rates averaging 6.7%. Notable activity included the sale of a 175,000 sf property at 5725 Major Boulevard for $72.3 million ($413 psf) in Q1 2026, the largest transaction of the past 12 months, while Q3 2026 deals featured Shoppes at Hammock Ridge at $18.5 million ($607 psf) while increased mall transactions reflected investor interest in adaptive reuse and value-add redevelopment opportunities.
