Orlando Commercial Real Estate Market Holds Steady
The current state of affairs in the United States has led many people to hold off on major purchases. Despite economic uncertainty, though, the Orlando commercial real estate market remains resilient. Strong population growth, constant migration, and high levels of tourism have allowed for the commercial real estate market to hold steady — despite rising interest rates and tighter lending standards.
What types of commercial property are investors interested in? Here’s a look at several sectors that are driving the market.
Retail Sector
Orlando’s retail market was strong in the first quarter of 2025, mainly due to tourism-driven consumer spending. The vacancy rate is still fairly low, at 3.7% even though the average asking prices of rent have risen to $29.77 per square foot. This is an increase of 2.4% from last year.
Since this time in 2024, there has been an increase of 795,000 square feet of new retail space in the market. Net absorption was modest at just under 16,000 square feet. These metrics reflect continued investor confidence and development interest in key high-demand submarkets.
Hospitality Sector
Orlando’s hotel market is still seeing strong growth mainly due to leisure and business travel. As of April 2025, the Orlando area leads the top 25 hotel markets in the United States. Spring break and increased group bookings have helped improve performance dramatically. A couple new developments, including Universal’s Epic Universe with its Stella Nova and Terra Luna resorts (1,500 rooms combined), and the Helios Grand Hotel (500 rooms with park access), are helping increase momentum. Investment activity is especially high in the upper-upscale and luxury segments, with a 20% national increase in hotel transactions during the fourth quarter of 2024.
Multifamily Sector
The multifamily sector isn’t doing as well as other sectors, since there is too much supply and this is affecting rents and occupancy. As of January, average asking rent prices dipped 0.3% over the previous three months. Prices declined by 2% year-over-year. Occupancy has fallen to 94.4%, which is the lowest level in over a decade.
Despite these statistics, construction remains active, with projects like the 377-unit Ellison Nona near Lake Nona and the 300-unit Standard441 in Lady Lake moving ahead. Investor sentiment remains optimistic, driven by Orlando’s economic diversification and strong household formation trends among young professionals and affluent retirees. There could be potential rent growth in late 2025.
Learn More About Commercial Real Estate
Despite national economic uncertainty, Orlando continues to draw investment across its retail, multifamily, and hospitality sectors. This shows that commercial real estate investments can be highly profitable ventures, and Florida is a prime area for such ventures. However, you need to be aware of the possible legal concerns that may arise.
Protect yourself with Orlando commercial real estate lawyer B.F. Godfrey from Godfrey Legal. We leverage more than 30 years of commercial real estate experience to provide you with comprehensive support regarding a wide variety of issues relating to commercial properties. Schedule a consultation with our office today by calling (407) 890-0023 or filling out the online form.
Source:
largocapital.com/orlando-commercial-real-estate-outlook-2025/
