Q1 2021 Orlando Market Report
Q1 2021 began with more optimism than the previous three quarters and continued
to improve with an impressive March Jobs Report, proving that economic recovery
is well underway. Timing the Return-to-Office is now a center-point of discussion for
many companies as they try to balance work productivity with employee sentiment.
Microsoft made headlines last month as it announced plans to partially reopen its
global headquarters outside of Seattle after a self-conducted survey revealed that 40%
of the 31,000 employee respondents felt overtaxed and unhappy with the previous
remote work mandate. Certain industries are leading the pack with return-to-office,
such as Tech, Law Firms and other industries where employee collaboration is critical.
However, the past year is not without its affects on the local Market. According to
CoStar, Orlando has now seen seven of the past nine quarters finish with negative net
absorption. Adding more strain to office landlords is the rapid increase in available
sublease space, currently at 1.5 M SF (4.5% of all inventory), the highest level ever
recorded in Orlando. While this does not bode well for landlords, it does lead to
opportunities for credit-worthy tenants to negotiate better than average lease terms.