Central Florida Shopping Centers Market Report

Market Overview

Florida’s retail industry has shown flexibility in the face of economic unpredictability and quick shifts in consumer patterns. Included in this market report are the following counties: Orange County, Osceola County, Lake County, Polk County, Brevard County, and Volusia County.

Driven by both tourism and local consumer demand, the retail landscape in Central Florida is characterized by a mix of large regional malls, power centers, lifestyle centers, and strip malls. Moreover, the region has also seen an increase in mixed-use developments, especially in Downtown Orlando, that combine retail, residential, and office space to create a vibrant and walkable urban environment.

With ample opportunities for investors, developers, and retailers, Central Florida’s shopping center/retail sector is a dynamic commercial real estate market that plays a vital role in the local economy.

Highlights

• Although Orlando’s retail industry constitutes just 1% of the National Index’s overall retail stock, it is worth noting that the city has a significant amount of retail space in progress, accounting for almost 4% of all retail construction in the country.
• The Osceola Outlying area in the Orlando metropolitan area is frequently sought after by retail investors. The yearly sales volume averaged $70.9 million in the last five years.
• Over the past few years, Polk County has become one of the most frequently traded submarkets in the region.
• Lake County is a highly liquid investment market known for its frequent trading activity, which was also seen in 2022. Market pricing is notably lower than the regional average, with prices currently at $233 per square foot.
• Volusia County experiences a strong demand for retail occupiers, fueled by a robust tourism industry and steady population growth. The current vacancy rate stands at 4.1%, which is similar to the National Index, and has decreased by -0.2% over the past year.

Vacancy | Rents | Construction

The average asking retail market rent per square foot for the cities included is $22.85. Osceola Outlying has the highest market rent per square foot at $29, which attributed to the sector’s rent gain of 7.8 percent in the last 12 months. The average retail vacancy of 2.96 percent is much lower compared to the national average of 4.2 percent. Construction activity is bursting in several of these markets, with a combined total of 3,864,069 square feet under construction. Orlando, FL stands above the rest regarding development, with 2.3 million square feet underway.

Sales

The average cap rate in the surrounding area is six percent. Of the submarkets included in this study, the 12-month sales volume reached nearly $3 billion. Orlando had the largest sale in the last 12 months out of all the submarkets for the Millenia Plaza for $56,910,247. Central Florida is an area full of opportunities for investors, and retail activity remains robust despite volatile economic times.