Orlando, FL Economic Overview
A bustling center of tourism, business, and international conventions, Orlando is a city quite literally in the middle of it all. Home to Walt Disney World, Universal Studios, a thriving hi-tech and scientific industry, and an international convention center, it is little wonder that Orlando is a top-notch destination for millions of people. With corporations, technological research and development, and amusement parks, Orlando commercial real estate is always in demand.
Orlando’s economy is driven by tourism, scientific and technological research and development, the entertainment industry, and the health care industry. Orlando’s tourism industry is massive, with the Walt Disney Company and Universal Studios operating two of the nation’s largest amusement parks. Tourists flock to the area by the millions to visit Disneyworld and its subsidiary parks and Universal Studios.
Orlando is also home to a sizeable scientific and technological industry. Lockheed Martin maintains a massive manufacturing plant in Orlando, to produce its missile systems, airplanes, and high tech research. General Dynamics, Mitsubishi, Siemens, and the United States Air Force all maintain engineering offices in the city as well. Due to its proximity to Patrick Air Force Base, Cape Canaveral Air Force Station, and the Kennedy Space Station, the United States Air Force, Army, and Navy all have research centers in Orlando as well.
Finally, there are numerous large-scale corporations and universities in the area. Darden Restaurants, the owner of Olive Garden and LongHorn Steakhouse, is headquartered in Orlando, while the University of Central Florida, the country’s largest university by student population, is also in Orlando.
Orlando, FL Commercial Real Estate Market
Orlando has a large downtown with a lot of office space, while also being sufficiently spread out to include real estate that could be used to accommodate large scale manufacturing and corporate headquarters. With the burgeoning tourist industry, retail and hospitality are also in high demand and will continue to be so in the future.
Downtown Orlando office spaces accommodate the financial, business, insurance, and retail sectors. Home to numerous skyscrapers, it remains a great location for business in the Orlando area.
East Orlando is home to the University of Central Florida and a booming retail and residential real estate market. With a large student body to cater to, all of whom need places to shop and live, East Orlando is a great location for businesses to expand into or establish themselves from.
Orlando, FL Office Sales Volume
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Orlando, FL Office Transactions
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Orlando, FL Commercial Inventory Breakdown
Office Spaces
Total: 19,967,188 SF
By square footage range:
- 50k to 100k SF: 4,123,406 SF / 20.65% of total office
- 100k to 500k SF: 13,774,456 SF / 68.99% of total office
- 500k to 1M SF: 2,069,326 SF / 10.36% of total office
By class:
- Class A+: 1,003,612 SF / 5.03% of total office
- Class A: 9,461,270 SF / 47.38% of total office
- Class B: 5,218,974 SF / 26.14% of total office
- Class C: 295,658 SF / 1.48% of total office
Industrial
Total: 31,540,013 SF
By square footage range:
- 50k to 100k SF: 7,629,370 SF / 24.19% of total industrial
- 100k to 500k SF: 16,830,079 SF / 53.36% of total industrial
- 500k to 1M SF: 2,173,661 SF / 6.89% of total industrial
- > 1M SF: 4,906,903 SF / 15.56% of total industrial
By class:
- Class A: 14,563,895 SF / 46.18% of total industrial
- Class B: 7,610,935 SF / 24.13% of total industrial
- Class C: 111,265 SF / 0.35% of total industrial
Office Spaces with Retail
Total: 8,770,125 SF
By square footage range:
- 50k to 100k SF: 647,213 SF / 7.38% of total office with retail
- 100k to 500k SF: 4,382,639 SF / 49.97% of total office with retail
- 500k to 1M SF: 2,740,273 SF / 31.25% of total office with retail
- > 1M SF: 1,000,000 SF / 11.4% of total office with retail
Employment in Orlando, FL
Tourism, healthcare, research and development corporations, hospitality, and financial institutions are the largest employers in the Orlando area. The tourism industry takes the top spot amongst all industries in the city. The Walt Disney World Resort employs 74,000 across its numerous parks and offices. Universal Orlando employs 20,000 employees.
The healthcare industry takes the third and fourth spots in terms of employment, as Adventist Health System/Florida Hospital employs 19,304, while Orlando Health employs 15,174. Farther down the list, but still among significant local employers are the Hospital Corporation of America, which employs 2,950, and Central Florida Health Alliance, which employs over 2,600.
Research and development corporations, notably Lockheed Martin and Siemens, employ 7,000 and 4,448, respectively. Hospitality companies, including Westgate Resorts, Rosen Hotels & Resorts, and Wyndham Worldwide employ 6,500, 4,322, and 3,509, again respectively. Finally, financial institutions are large-scale employers, with companies like JP Morgan Chase employing 3,053.
Education in Orlando, FL
Public education in Orlando is directed by Orange County Public Schools, which operates 188 schools in the Orlando area. There are also numerous private schools in the area, including Forest Lake Academy, Lake Highland Preparatory School, and Bishop Moore High School.
The area is home to a number of universities, as well. The University of Central Florida is the largest university in the United States and an internationally recognized higher learning institution. Orlando is also home to Florida A&M University’s College of Law, which helps provide lawyers for the area. There are also a number of private universities, including Belhaven University, Barry University’s School of Law, and the University of Florida College of Pharmacy. Finally, Orlando is home to Valencia College and the Seminole State College of Florida, both of which are smaller, liberal arts colleges. The College of Medicine is located in Lake Nona.
Commuting Time in Orlando, FL
Orlando’s traffic is, famously, not the best in the world. In particular, commuters from northern suburbs and Seminole County experience gridlock on an almost daily basis, on Interstate 4. Traffic also tends to get particularly heavy on the south side of town, where the tourism industry is dominant. Indeed, traffic can get so bad that Orlando, and the Florida State Government have established hotlines to alert drivers to gridlock on their potential commute. However, with the lack of alternate routes, many drivers are unable to avoid these traffic jams.
Orlando Demographics
Population
- Total Population275,690
- Male Population(48.2 %) 132,885
- Female Population(51.8 %) 142,805
- Median Age33.50
Income/Financial
- Average Household Income$69,685
- Median Household Income$48,511
- Median Income Under 25$26,852
- Median Income 25-44$51,023
- Median Income 45-64$53,994
- Median Income Over 65$35,657
News
The calendar is starting to stack up with a range of exciting Commercial Real Estate (CRE) events to attend in the second half of 2019. Here is an extensive list of the upcoming shows, expos, and CRE events. New England Conference & Deal Making July 16 – 17, 2019, Boston, Massachusetts, U.S. Thi...
2019 US Office Pipeline – NYC, the Bay Area and San Francisco Set to Deliver 33 MSF of Office Space
April 10, 2019
Since 2009, the U.S. economy has had more than 110 consecutive months of growth, making this the second longest economic expansion since the Great Depression. After a rather tepid 2017 performance, the U.S. office market gathered some steam in 2018, adding 76 million square feet of new office sp...
2018 Office Check-In: Top US Markets for Development, Largest Projects of the Year
September 20, 2018
We’re almost halfway through H2 2018, and it’s high time to check up on construction activity, as well as the state of the U.S. office pipeline when compared to previous analyses. Last year around the same time, we looked at top U.S. cities for office delivery during the fall-winter season, and ...