Orlando’s commercial real estate market is booming, offering a wide range of opportunities for investors and businesses alike. From office spaces to retail centers, the city’s diverse property landscape caters to various commercial needs.
At Global Florida Realty, we’ve seen a surge in interest for commercial property for sale in Orlando, FL. This comprehensive guide will walk you through the essential factors to consider when investing in Orlando’s thriving commercial real estate market.
Orlando’s Commercial Real Estate Landscape
Market Trends and Property Types
Orlando’s commercial real estate market thrives with robust growth and diversification. Total sales in the region exceeded $222 billion in 2024, 3.4% more than in 2023, according to the Orlando Economic Partnership.
The demand for commercial properties in Orlando spans various sectors. Office spaces, especially those offering flexible work environments, have experienced a 15% increase in leasing activity over the past year. Retail properties, supported by Orlando’s flourishing tourism industry, maintain a low vacancy rate of 4.5% (as reported by CoStar Group).
Industrial real estate stands out as another hot commodity in Orlando. The city’s strategic position as a logistics hub has pushed warehouse and distribution center demand to new heights. Sales activity in the Orlando industrial market remained robust in 2024, with several key transactions reflecting strong investor interest.
Prime Locations for Commercial Investment
Several areas within Orlando offer exceptional commercial real estate opportunities:
- Lake Nona: Known for its medical city, this area attracts healthcare-related businesses and tech companies.
- Downtown Orlando: Remains a hotspot for office spaces and mixed-use developments (e.g., Creative Village reshaping the urban landscape).
- International Drive: The heart of Orlando’s tourist district, offering prime locations for hospitality and retail investments.
- Orlando International Airport area: Sees increased interest from logistics companies and e-commerce fulfillment centers.
Investment Considerations
When evaluating commercial property for sale in Orlando, FL, investors should consider the city’s strong population growth. The U.S. Census Bureau reports an annual growth rate of 1.8%, which drives demand across all commercial sectors.
Properties with green certifications can command 10-20% higher rents, reflecting a growing preference for sustainable buildings. Investors should also note the trend towards mixed-use developments, which combine residential, commercial, and office spaces to create vibrant, walkable communities.
Market Outlook
The future of Orlando’s commercial real estate market appears bright. The city’s pro-business climate, combined with Florida’s favorable tax environment, continues to attract companies and investors from across the country. As Orlando’s economy expands beyond tourism, we anticipate sustained growth in the commercial sector, particularly in areas like Lake Nona and the airport corridor.
With this comprehensive overview of Orlando’s commercial real estate landscape, let’s now explore the critical factors to consider when buying commercial property in this dynamic market.
Key Factors for Buying Orlando Commercial Property
Location: The Cornerstone of Commercial Success
Location remains the single most important factor in commercial real estate. In Orlando, properties near major attractions, business districts, or transportation hubs command premium prices and higher occupancy rates. The city’s future projections and historical trends play a crucial role in determining the value of commercial properties.
A property’s accessibility plays a vital role. Is it easily reachable by public transportation? Does it have ample parking? Properties with good visibility and easy access often perform better in the long run.
Zoning and Future Development: Planning for Growth
Understanding Orlando’s zoning regulations is essential. The city’s zoning laws determine what types of businesses can operate in specific areas. Before purchasing, verify that the property’s zoning aligns with your intended use. Orlando’s planning department regularly updates its comprehensive plan, which can affect future property values and usage.
Pay attention to upcoming developments in the area. The planned expansion of the SunRail commuter rail system could significantly boost property values along its route.
Property Condition and Renovation Costs
Assessing a property’s condition helps avoid unexpected expenses. Older buildings might require significant upgrades to meet current building codes or energy efficiency standards. In Orlando’s climate, HVAC systems are particularly important and can be costly to replace.
Some investors underestimate renovation costs. Try to budget an additional percentage of the purchase price for potential renovations or unexpected issues. Always conduct a thorough inspection and consider hiring specialists to assess major systems like electrical, plumbing, and structural integrity.
Return on Investment: Crunching the Numbers
Calculating potential ROI involves more than just purchase price and rental income. Consider factors like property taxes, insurance costs, and maintenance expenses. Orlando’s property tax rates vary by location.
The Orlando office market demonstrated resilience in 2024, with over 2.8 million square feet leased and steady office rents averaging $27.29 per square foot. This information can be valuable when evaluating potential returns on office space investments.
When evaluating ROI, also consider the potential for property value appreciation. Some areas in Orlando have seen significant increases in property values over recent years.
With these key factors in mind, let’s explore the steps involved in purchasing commercial property in Orlando and how to navigate this process effectively.
Steps to Purchase Commercial Property in Orlando
Set Your Budget and Secure Financing
Establish a clear budget before you enter the market. Include the purchase price, closing costs, potential renovations, and operating expenses in your calculations. Commercial property prices in Orlando vary, with the retail sector seeing average asking rates climb to $29.48 per square foot, a 4.9% increase from the previous year.
Financing is a critical step. Local banks in Orlando offer competitive rates for commercial mortgages. The SBA 504 loan program is another option, providing long-term, fixed rate financing for major fixed assets that promote business growth and job creation.
Partner with Local Experts
Work with a knowledgeable local commercial real estate agent. They possess in-depth market knowledge and access to off-market properties. (At Global Florida Realty, our agents average 15 years of experience in Orlando’s commercial market.)
Engage a commercial real estate attorney early in the process. They will review contracts, ensure compliance with local regulations, and protect your interests throughout the transaction. Legal fees for commercial transactions in Orlando typically range from $3,000 to $10,000, depending on the deal’s complexity.
Conduct Comprehensive Due Diligence
Thorough due diligence is essential. This includes:
- Property inspection: Hire a licensed commercial property inspector. In Orlando, a comprehensive inspection of a medium-sized commercial property costs between $2,000 and $5,000.
- Environmental assessment: Florida’s environmental regulations are strict. A Phase I Environmental Site Assessment (costing around $3,500) will identify potential environmental liabilities.
- Title search: Ensure the property has a clear title. Title search and insurance in Orlando typically cost about 0.5% of the property’s value.
- Zoning verification: Confirm that your intended use aligns with local zoning laws. Orlando’s zoning regulations are available online, but a local zoning expert can provide clarity on complex cases.
Master Negotiations and Closing
Negotiation is an art in commercial real estate. Orlando’s competitive market requires quick action. The average time on market for commercial properties in Orlando is 180 days, but prime properties sell much faster.
Consider contingencies carefully when making an offer. Common contingencies in Orlando include financing, inspection, and environmental assessments. (However, in a seller’s market, fewer contingencies can make your offer more attractive.)
The closing process in Florida typically takes 30-45 days for commercial properties. During this time, you’ll finalize financing, conduct final walk-throughs, and prepare for the transfer of ownership. Closing costs in Orlando generally range from 2% to 5% of the purchase price, including title insurance, attorney fees, and recording fees.
Final Thoughts
Orlando’s commercial real estate market offers diverse opportunities for investors. The city’s economic growth, strategic locations, and varied property types attract businesses across sectors. We at Global Florida Realty understand the importance of location, zoning regulations, and property conditions when evaluating commercial property for sale in Orlando, FL.
Our team brings extensive expertise to guide you through the complexities of commercial property investments. We assist with every aspect of the buying process, from property search to closing. Our deep market knowledge helps identify prime opportunities that align with your investment goals.
Global Florida Realty stands ready to help you navigate Orlando’s dynamic commercial real estate landscape. Our comprehensive services (including property search, due diligence, and negotiation support) ensure a smooth and successful transaction. Contact us today to explore the potential of commercial properties in Orlando and position yourself for long-term growth in this thriving market.
