Future Cities
Retail Markets in Focus: Orlando
Spotlighting North American retail markets with unique characteristics that attract occupiers and investors.
May 15, 2024 5 Minute Read
Orlando is a magnet for retailers due to its rapid population growth, world-class theme parks and steady flow of visitors that fuel strong consumer spending.
Orlando ranked second among U.S. markets for retail space absorption over the past four quarters, lowering its retail availability rate to 3.6%—well below the 4.7% U.S. average. Orlando’s suburban markets accounted for about one-third of the metro area’s total absorption. Western Orange County, which includes the communities of Apopka, Pine Hills, Ocoee, Winter Garden Oak Ridge, Holden Heights and Holden Lakes, had particularly strong performance.
Figure 1: Top 10 U.S. Markets for Retail Absorption, 2023
Orlando is also one of the top U.S. markets for absorption as a percentage of total retail supply. Among markets with more than 100 million sq. ft. of retail space, Orlando’s absorption rate of 1.7% is second only to Austin’s 1.8%. However, Orlando’s retail development has been more balanced, as net absorption was 1.6 times the amount of retail space delivered vs. Austin’s 1.1 times.
Figure 2: Absorption Rate by Market
Source: CBRE Econometric Advisors, Q4 2023.
Orlando is a popular travel destination, as its theme parks draw visitors from around the world. Average quarterly demand for hotel rooms reached almost 117,000 last year, topping all other U.S. markets.
Figure 3: Top U.S. Markets for Hotel Room Demand
Among U.S. markets with at least $100 million in annual consumer spending, Orlando was in the top 10 for consumer spending growth at 36%. Over the next five years, the market is forecast to have the seventh-highest consumer spending growth among this group.
As one of the world’s top tourist markets and one of the fastest-growing in the U.S., Orlando’s strong demand for retail space is expected to continue. Expansion-minded retailers will continue to target the Orlando market for it strong retail fundamentals.
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