5144 S Orange_brochure.v2

LOCATION & DEMOGRAPHICS

as Polk County. The submarket is highly desirable as a location for sales divisions of Fortune 1000 companies. In addition, many office tenants like the submarket due to its central location, the nearby well-established housing communities, and proximity to Orlando’s CBD. VACANCY & ABSORPTION Demand for office space in Millenia/Metrowest was broad-based with the overall direct vacancy rate hitting 8.4% at the end of the third quarter 2018. Class “A” overall vacancy fell by 20 bps over the same period to 6.7% which is down 780 bps over a five-year period. Absorption was anticipated to remain positive for the rest of 2018 on strong leasing activity in both Class “A” and “B” assets. With zero new construction and current available space in the market tightening, the vacancy rate was projected to continue to remain in the single digits through 2019. ASKING RENTAL RATES Direct asking rents for Millenia/Metrowest ended Q3 2018 at $22.50 psf, up 11.1% in five years and is projected to grow higher on limited new construction and availabilities. Direct asking gross rents in the submarket for Class A space exceeded $25.00 psf in that same time period. A lack of new inventory and quality space available, particularly in the high-end assets that meet current tenant’s needs and specifications, will continue to keep vacancy rates at historic lows. The outlook for the office market in the Millenia/Metrowest submarket will be strong. With many companies moving operations to more centralized locations with close proximity to major transportation arteries, the Millenia/Metrowest submarket is undoubtedly an attractive option for firms seeking to establish a facility to serve the entire metro area as well as the state.

MILLENIA/METROWEST SUBMARKET The Millenia/Metrowest submarket is part of the Orlando metro region and is in the southwest region of Orange County. The submarket is located just off Interstate 4 by the 1.2 msf Mall at Millenia. The submarket includes the area south of the 408 Expressway, north of Oakridge Road and west of Orange Avenue running along both sides of the I-4 Corridor. The overall submarket includes major office concentrations of Millenia, Metrowest and Windermere. Millenia/Metrowest is also home to many tourist-driven companies including Universal Studios, Planet Hollywood International and Hilton Grand Vacations. The submarket contains approximately 2.1 msf of inventory in 33 buildings. The breakdown of the submarket’s office inventory is 59.0%, Class A space, 39.7%, Class B space and 1.4%, Class C space.

The property is located along the west side of S. Orange Avenue, approximately 3.5 miles south of downtown Orlando. Orange Avenue is a two-way, five lane thoroughfare being the primary north south commercial roadway in this market area and the primary road through the heart of downtown Orlando to the north. The property is located just south of the coveted SoDo district of Orlando, with a long-established area of the incorporated City of Edgewood. The surrounding area comprises light industrial, retail and office uses along the Orange Avenue corridor and residential uses on the backlands and secondary roads. Many of the residential neighborhoods in the immediate area are older and upscale, benefitting from frontage along the shores of the area’s numerous freshwater lakes.

Demographics

1 Mile 2 Mile 3 Mile

Population

5,470 106,615 263,799

Employees

2,831

55,155 138,613

Owner Occupied Housing

78.87% 49.31% 42.63%

Median Age

44.40 36.80 36.40

Associates Degree+

1,879 29,831

76,286

Average Income

$89,433 $61,013 $57,292

The submarket is also home to the high-end Mall at Millenia, one of the largest enclosed malls in Central Florida as well as adjacent to several of Orlando’s major tourist attractions including Universal Studios Florida, Sea World and International Drive. The area offers one of the few quality alternatives to Orlando’s Central Business District for tenants seeking high quality alternatives south of Downtown. As a result of its high concentration of recently constructed office product, Class A space represents approximately 62% of the market. There are several major office parks within the submarket including Highwood Properties’ Metrowest development, SouthPark office park developed by Flagler Development, and the 3 building Millenia Lakes project developed by Duke Properties. TENANT DRIVERS The Millenia/Metrowest submarket historically saw the significant tenant demand and leasing activity due to the variety of office product available, abundant parking ratios and its ability to draw skilled employees from as far north as Seminole County and as far south

Cushman & Wakefield | 5144 S. Orange Avenue | 7