Why Orlando

ORLANDO Why

DYNAMIC TRENDS DRIVING GROWTH Q1 2025

Orlando Snapshot

The Orlando – Kissimmee – Sanford MSA in Central Florida is comprised of the following counties: Seminole

ORLANDO

About Orlando

SEMINOLE

Orange Osceola

ORANGE

OSCEOLA

#1 Best Large City to Start a Business

WalletHub, 2025

WITH OVER 3.0 Million People, the Orlando Region is the 4 th Largest MSA in the Southeast

Cushman & Wakefield | Why Orlando

Contents

OFFICE Q4 2024 ORLANDO

MARKET FUNDAMENTALS

ECONOMY Orlando’s unemployment rate was 3.3% in Q4, marking a slight increase of 20 basis points (bps) compared to one year ago, but still below the national average of 4.2%. Modest job growth persisted, with nonfarm employment expanding by 14,600 jobs, a 1.0% year-over-year (YOY) increase. DEMAND After healthy demand in the first three quarters of 2024, Orlando recorded 414,000 square feet (sf) of leasing activity during Q4. This marked the lowest demand levels of 2024 but was still an 8.9% increase from Q4 2023. Leasing activity in suburban submarkets ended the year with 1.7 million square feet (msf) of new deals signed, down 5.4% YOY, while the Central Business District (CBD) had the highest annual leasing volume since 2019 with 517,000 sf signed, up 90.6% YOY. Tenants continued to target Class A assets with over 1.4 msf signed in 2024, an annual increase of 16.5%. SUPPLY The overall vacancy rate remained unchanged from the previous quarter, with a more significant uptick of 80 bps YOY to 17.0%. The Longwood and

17.0% Vacancy Rate -270K YTD Net Absorption, SF $27.54 Asking Rent, PSF (Overall, All Property Classes)

YOY Chg

Outlook

SPACE DEMAND / DELIVERIES

900

600

0 300

ECONOMIC INDICATORS

-300

Related Insights Cushman & Wakefield Research reports analyze economic and commercial real estate activity including supply, demand and pricing trends at the statewide, market and submarket levels. 1 Orlando Employment 3.3% Orlando Unemployment Rate 4.2% United States Unemployment Rate Source:BLS Airport/Lake Nona submarkets recorded the highest vacancy rates, each at 25.5%. The Longwood submarket recorded a 550-bp YOY increase due to 52,000 sf of net occupancy losses in Q2 2024, while the Airport/Lake Nona submarket had a 40-bp decline. The Winter Park submarket continued to record the lowest vacancy rate at 4.5%, falling 290 bps YOY. Orlando netted 19,500 sf of absorption during Q4, bringing the 2024 total to -270,300 sf. The positive quarterly absorption in Q4 was propelled by Galen College of Nursing occupying 42,145 sf at 12650 Ingenuity Dr in the University/Research Park submarket. The 436 Corridor submarket gave back the most space in 2024, totaling nearly 70,000 sf of negative absorption. The largest move-outs in the 436 Corridor submarket were both by GSA: 32,600 sf at 3535 Lawton Rd and 33,300 sf at 5520 Gatlin Ave. PRICING Overall rents remained relatively flat YOY, posting at $27.54 per square foot (psf). As a higher volume of pricier Class A assets were leased and taken off the market than Class B, Class A asking rents rose by 1.5% YOY to $30.14 psf while Class B rents increased 2.2% to $23.69 psf. However, this imbalance led to Class B vacancies contributing more heavily towards the overall rate, holding it flat. In turn, the delta between Class A and B rents decreased 1.3% YOY. YOY Chg Outlook 1.5M

-600 Thousands

SELECT A TOPIC TO NAVIGATE SECTIONS

-900

2020

2021

Net Absorption, SF Construction Completions, SF

2022

2023

2024

OVERALL VACANCY & ASKING RENT

$28

$27

$26

20%

$25

16%

$24

12%

2020

2021

2022

8%

Asking Rent, $ PSF

2023

Clicking the home icon will take you back to the table of contents

2024

4%

Vacancy Rate

© 2025Cushman & Wakefield © 2025Cushman & Wakefield

Migration Hot Spot

Historic Population #1 FASTEST GROWING MSA IN THE UNITED STATES, with a 2.7% increase from 2023.

Net Migration

Projected Growth

2.9M

78.1k

3.2M

3.3M

80k

3M

3.5 %

70k

3.0 %

2.9M

3.2M

3.0 %

60k

2.5 %

2.8M

50k

2.0 %

3.1M

3.0M

2.7M

1.5 %

40k

2.6M

3M

1.0 %

30k

2.6M

26.1k

0.5 %

20k

2.9M

2.5M

0.0 %

10k

2019

2020

2021

2022

2023

2024

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Population

Growth %

Net Migration

Population

#7 IN THE NATION FOR NET MIGRATION FROM 2019 – 2024

DAL 668k

HOU

PHX

TPA

ATL

AUS

ORL

CLT

SA

JAX

MIA

RDU

SRQ

LAS

BNA

LKL

FMY

SJC

CHI

SF

LA

NY

800k

600k

484k

383k

343k

330k

315k

400k

264k

246k

221k

188k

186k

173k

165k

155k

153k

150k

149k

200k

0

−82k

−200k

−170k

−191k

−400k

−427k

−473k

−600k

Cushman & Wakefield | Why Orlando

Net Migration (2019 – 2024)

Projected Net Migration (2025 – 2030)

Industry Diversity

120k Total Businesses

64.0% White Collar

18.2% Blue Collar

17.8% Services

Business Summary BY NAICS (%) Orlando U.S.

CLICK EACH TOPIC TO LEARN MORE

0.0 %

5.0 %

10.0 %

15.0 %

20.0 %

Leisure & Hospitality

#1 #2 #3 #4 #5

Professional & Business Services

Trade, Transportation, and Utilities

Education & Health Services

Government

Construction

Financial Activities

Other Services

Manufacturing

Information

Cushman & Wakefield | Why Orlando

Skilled & Growing Workforce

Unemployment Rate

Labor Force

1.6M

7.0 %

1.5M

6.0 %

1.5M

5.0 %

4.0 %

3.6 %

1.4M

1.4M

3.0 %

2.6 %

2.0 %

ORLANDO IS THE #10 Best Place to Find a Job in the U.S. – WalletHub, 2025

1.3M

1.0 %

1.2M

0.0 %

2020

2021

2022

2023

2024

2025

2020

2021

2022

2023

2024

2025

IN 2024, Florida Ranked #2 Best Workforce – CNBC

Nearly 53% OF THE TOTAL POPULATION IS 25–64 YEARS OLD. ESRI

1.5M Employed Workers

ESRI

Cushman & Wakefield | Why Orlando

Tourism

Orlando Named THE BEST U.S. CITY TO VISIT Travel Weekly's 2024 Readers' Choice Awards 75M VISITORS IN 2024 1.8% increase from 2023, setting another record year for Orlando's tourism industry

57.3M Orlando International Airport Volume

1.7M Orlando County Convention Center

130k+

Hotel Rooms

#1 Meeting Destination in North America

2024 YEAR END

2024 YEAR END

2023 YEAR END

ORLANDO'S MASSIVE TOURISM PRESENCE BRINGS BUSINESS INTEREST, WITH NEW-TO-MARKET COMPANIES BOTH NATIONALLY AND INTERNATIONALLY IN THE LAST 12 MONTHS

Cvent 2024

THEME PARK CAPITAL OF THE WORLD WITH 7 OF THE NATION'S TOP 10 THEME PARKS BY ANNUAL ATTENDANCE

#1

#10

#3

#7

#4

#6

#5

25% International Travel Growth

Brightline Orlando Station now open, offering additional access from Florida's southern markets.

Cushman & Wakefield | Why Orlando

Work Life Balance

Vibrant Night Life

DOWNTOWN ORLANDO

DISNEY SPRINGS

Ranked 12th Best City in the U.S. and 37th in the World Resonance "Best Cities" 2024/2025

THEME PARKS 11 MAJOR PARKS

UNIVERSAL CITYWALK

Four Professional Sports Teams

82°- 64° average annual temperature

#1 Sports Business City in the U.S. Sports Business Journal, 2024

Orlando Solar Bears

Orlando Pride

Orlando City SC

Orlando Magic

HOCKEY

SOCCER

SOCCER

BASKETBALL

Cushman & Wakefield | Why Orlando

Education

#1 Best State for Higher Education Eight Years in a Row U.S. News & World Report, 2024

Top Colleges BY ENROLLMENT 2024

1

University of Central Florida 69,233 Valencia College 42,524 Full Sail University 26,421 Seminole State College 14,104 Florida Institute of Technology 8,516 Ana G. Mendez University 8,382 Lake-Sumter State College 5,064 Rollins College 3,013 AdventHealth University 1,692 Southern Technical College 1,686

4 5 3 6 7 8 2

UNIVERSITY OF CENTRAL FLORIDA 12th Most Innovative University in the Nation – U.S. News & World Report, 2025 17th Best Colleges for Education in Amercia – Niche, 2025

#3 BEST COLLEGE CITY IN AMERICA WalletHub, 2025

180 k+ students attend one of the numerous, distinguished educational institutions in the Orlando area.

ROLLINS COLLEGE #2 Best Regional Universities South

US News and World Report, 2025

9 10

31+ local colleges and higher education institutions preparing graduates with market-demand skills

Cushman & Wakefield | Why Orlando

Logistics & Transportation

Map Layer Options

Toggle to Enable Views

Rail & Intermodal

Ports

Highways

Metropolitan Areas

Major Airports

Map Legend

Rail Brightline's Orlando station is now open. The high speed train offers convenient connectivity to Florida's southern markets. Orlando's SunRail is a commuter rail service with 17 stations across greater Orlando. Sky 2 International Airports - Orlando International Airport (MCO) and Orlando Sanford International Airport (SFB). MCO recorded over 57.3 million travelers throughout 2024, with international travel up 11.3%. MCO's Terminal C expansion was finished in 2022, greatly improving the airport's ability to handle the surge of traffic post travel shutdown.

Sea 60 minutes to Port Canaveral.

Close access to deep water container port and cruise ship access.

Land Orlando's central location supports logistical distribution advantages to service the entire state. Florida DOT has $2.4B in I-4 express lane expansion planned over the next 10 years.

Cushman & Wakefield | Why Orlando

New-to-Market Tenant Demand

Raremed

REd6 Inc

Medlin Ramps

Pittsburgh

Wilmington

San Francisco

England

Charter Research

Virginia Beach

Havik

Santa Fe Springs

Kaseya IT

Hudson Procurement Group

Orlando Continues to Draw a Wide Array of New-To-Market Companies Both Nationally and Internationally

ExamRoom.AI Corp

Cushman & Wakefield | Why Orlando

New Development

Over $2 Billion IN NEW DEVELOPMENT

$7 Billion INVESTMENT

$500 Million INVESTMENT (ESTIMATED SPRING 2025)

900 KSF OFFICE / CREATIVE

200 KSF CLASS A OFFICE

68 AC MIXED-USE

750 ACRES

50+ ATTRACTIONS

3 ON-SITE HOTELS

260 HOTEL ROOMS 16 KSF CONFERENCE SPACE

800 KSF HIGHER EDUCATION

270 RESIDENTIAL UNITS

5 Distinct PARK SELECTIONS

166 KSF ORLANDO STUDIO + 2k Game Developers PROFESSIONALS AND STUDENTS

100 KSF RETAIL / COMMERCIAL

125 KSF RETAIL

DEVELOPERS

17,500 JOBS CREATED

10M VISITORS ESTIMATED ANNUALLY

1,500 HOTEL ROOMS ACROSS 3 ON-SITE HOTELS

2,000+ RESIDENTIAL UNITS

1,140 PARKING SPOTS

Cushman & Wakefield | Why Orlando

Office Market Snapshot Q1 2025 36.7 MSF Orlando Inventory

CLASS A 21.9 MSF

CLASS B 14.8 MSF

Class A Spotlight

SUPPLY & DEMAND

ORLANDO CBD

7.3 MSF Inventory

16.0% Direct Vacancy

$32.44 Direct Rent (FS PSF)

2.0M

1.0M

AIRPORT / LAKE NONA

0.0M

1.6 MSF Inventory

20.6% Direct Vacancy

$34.68 Direct Rent (FS PSF)

−1.0M

2020

2021

2022

2023

2024

2025 YTD

LAKE MARY / HEATHROW

Leasing Activity

Construction Completions

Overall Absorption

4.5 MSF Inventory

18.6% Direct Vacancy

$26.61 Direct Rent (FS PSF)

DIRECT RENTAL & VACANCY RATES

MAITLAND

5.6 MSF Inventory

16.2% Direct Vacancy

$23.72 Direct Rent (FS PSF)

$ 28

15 %

$ 27

$ 26

TOURIST CORRIDOR / CELEBRATION 6.5 MSF Inventory 10.7% Direct Vacancy $28.24 Direct Rent (FS PSF) UNIVERSITY / RESEARCH PARK 4.1 MSF Inventory 12.0% Direct Vacancy $24.52 Direct Rent (FS PSF)

10 %

$ 25

5 %

$ 24

$ 23

0 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Direct Rental Rate

Overall Vacancy

Cushman & Wakefield | Why Orlando

Industrial Market Snapshot Q1 2025

Submarket Spotlight 13.6 MSF Manufacturing 12.3 MSF Office Services/Flex 100.3 MSF Warehouse/Distribution

SUPPLY & DEMAND

12.0M

10.0M

8.0M

6.0M

4.0M

2.0M

0.0M

AIRPORT / LAKE NONA

−2.0M

2020

2021

2022

2023

2024

2025 YTD

24.3 MSF Inventory

8.1% Direct Vacancy

$10.49 Direct Rent (NNN PSF)

Leasing Activity

Construction Completions

Overall Absorption

LAKE MARY / SANFORD

9.1 MSF Inventory

7.4% Direct Vacancy

$9.03 Direct Rent (NNN PSF)

DIRECT RENTAL & VACANCY RATES

ORLANDO CENTRAL PARK

$ 12

8 %

$ 10

22.2 MSF Inventory

4.1% Direct Vacancy

$9.57 Direct Rent (NNN PSF)

$ 8

6 %

$ 6

4 %

REGENCY / TURNPIKE

$ 4

2 %

18.1 MSF Inventory

2.1% Direct Vacancy

$10.89 Direct Rent (NNN PSF)

$ 2

$ 0

0 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

SILVER STAR / APOPKA

Direct Rental Rate

Overall Vacancy

22.1 MSF Inventory

19.1% Direct Vacancy

$7.59 Direct Rent (NNN PSF)

Cushman & Wakefield | Why Orlando

EFFECTIVE RENT VS STABILIZED OCCUPANCY RATE Multifamily Market Snapshot Q1 2025 219,376 UNITS Orlando Inventory

ABSORPTION VS COMPLETIONS

92.7% STABILIZED OCCUPANCY RATE Excludes Properties Still In Their Initial Lease-Up Period

$ 2.0k

97 %

15.0k

96 %

$ 1.5k

95 %

10.0k

$ 1.0k

94 %

Effective Rents Increased 22.3% Over the Past Five Years ENDING Q1 2025 AT $1,790 PER UNIT

5.0k

93 %

$ 0.5k

92 %

0.0k

14,089 Units Under Construction AT END OF Q1 2025

2020

2021

2022

2023

2024

2025 YTD

$ 0.0k

91 %

1Q20

1Q21

1Q22

1Q23

1Q24

1Q25

Effective Rent Per Unit

Stabilized Occupancy Rate

Construction Completions

Overall Net Absorption

54,341 Units Delivered SINCE 2020

Over $19.5 Billion In Sales Over The Past 5 Years WITH 2021 RECORD-SETTING $7.3 BILLION

Cushman & Wakefield | Why Orlando

Source: CoStar

Retail Market Snapshot 159.8 MSF Total Retail

Q1 2025

SUPPLY & DEMAND

Product Type Spotlight

3M

4

2M

MALLS

1M

13.4 MSF Inventory

7.4% Overall Vacancy

$39.51 Overall Rent (NNN)

LAKE

SEMINOLE

0

POWER CENTERS

−1M

2020

2021

2022

2023

2024

2025 YTD

10.9 MSF Inventory

6.1% Overall Vacancy

$30.66 Overall Rent (NNN)

ORANGE

Construction Completions

Overall Net Absorption

NEIGHBORHOOD CENTERS

47.4 MSF Inventory

4.5% Overall Vacancy

$28.04 Overall Rent (NNN)

DIRECT RENTAL & VACANCY RATES

4

OSCEOLA

STRIP CENTERS

$ 30

5.0 %

9.8 MSF Inventory

4.2% Overall Vacancy

$28.28 Overall Rent (NNN)

4.5 %

$ 28

4.0 %

$ 26

3.5 %

$ 24

GENERAL RETAIL

3.0 %

$ 22

74.9 MSF Inventory

2.2% Overall Vacancy

$28.75 Overall Rent (NNN)

2.5 %

$ 20

2.0 %

2020

2021

2022

2023

2024

2025

OTHER

Direct Rental Rate

Ovreall Vacancy

3.4 MSF Inventory

2.1% Overall Vacancy

$38.76 Overall Rent (NNN)

Cushman & Wakefield | Why Orlando

Source: CoStar

Market Lead

SOURCES

TownCharts univstats.com U.S. Census Bureau U.S. Bureau of Labor Statistics Visit Orlando Wallet Hub WorldsBestCities.com WUSF News

Florida Review Lightcast.io MacroTrends.net Moody's Analytics Niche 2020 OrlandoAirports.net Orlando Business Journal Tax Foundation, 2021

aaroads.com Business.Orlando.org Chief Executive Magazine,

Authors

2022 Biz2Credit CollegeEvaluator CoStar Enterprise Florida ESRI flgov.com

©2025 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representation as to its accuracy. Cushman & Wakefield does not claim any ownership rights to the corporate logos featured in Why Orlando and their usage in this research report is strictly for illustrative and informative purposes. Why Orlando is intended for limited distribution.