The Central Florida office market has somewhat stabilized over the course of 2021. Companies whose leases expired or could renegotiate midterm, are right sizing their spaces. The last 3 quarters of 2020 saw a significant amount of direct and sublease space come on the market. In 2021, companies have gradually come back to the office, and have been executing long term leases. While sublease space continues hit the market, it is slowing down and landlords are beginning to compete for deals again, albeit at higher concession packages. Finally, several relocations from out of state have buoyed optimism in the office market.
Supply shortages and skyrocketing labor costs are impacting construction pricing. Couple that with understaffed building departments, and timetables for construction are greatly exacerbated. Tenants or owner users, need to plan for long lead times to avoid holdover penalties.
Institutional landlords with an abundance of capital, are chasing investment sales compressing cap rates to all time lows.
Industrial development and leasing are going strong. With Florida’s high population growth, elevated consumer spending and a shift toward e-commerce, speculative industrial properties are being leased well before completion. It’s a field of dreams mentality.
Supply shortages and skyrocketing labor costs are impacting construction pricing. Couple that with understaffed building departments, and timetables for construction are greatly exacerbated. Tenants or owner users, need to plan for long lead times to avoid holdover penalties.
Institutional landlords with an abundance of capital, are chasing investment sales compressing cap rates to all time lows.
Industrial development and leasing are going strong. With Florida’s high population growth, elevated consumer spending and a shift toward e-commerce, speculative industrial properties are being leased well before completion. It’s a field of dreams mentality.