Retail Leasing in Orlando

When it comes to retail growth, Florida is one of the best states. Orlando is particularly popular among retail investors. Orlando brings a lot of money into the area due to its rapid population growth. Plus, its popular theme parks and beautiful beaches bring in a steady flow of visitors

Orlando ranked second, behind Chicago, among markets in the United States for retail space absorption over the past four quarters. Its retail availability rate is just 3.6%, which is below the U.S. average of 4.7%. Miami was also in the top 10. Western Orange County also had a particularly strong performance.

Orlando also ranks high for absorption. Absorption is a metric that measures the amount of space that is leased or sold within a market over a specific period of time. It is measured in square feet.

Among markets with more than 100 million square feet. of retail space, Orlando’s absorption rate of 1.7%. It ranks right behind Austin, at 1.8%. However, Orlando’s retail development has been more balanced. The net absorption was 1.6 times the amount of retail space delivered vs. 1.1 times for Austin.

Orlando is also an ideal area for purchasing retail space because it is a popular travel destination. Its theme parks attract visitors from not only other states but all around the world. Average quarterly demand for hotel rooms reached almost 117,000 last year, ranking it at the top of the list for all U.S. markets. New York, Los Angeles, Chicago, and Atlanta rounded out the top five. Miami ranked #10 on the list.

What to Know About Retail Leasing 

Whether you are looking to be a tenant or you are part of the company leasing out the property, you will want to know the basics of retail leasing.

The more popular an area is, the higher the amount of rent. High-traffic areas, such as malls or plazas, can command higher rents. Anchor tenants can also play a role. The presence of large stores or businesses in a shopping center can drive more customers to smaller retailers. Retail spaces must comply with local zoning regulations, which determine permissible business activities.

Security deposits may apply and may range from 1 to 3 months of rent. As a tenant, you will want to understand your operating expenses. You may be charged for landscaping, parking maintenance, utilities, and other fees. Personal guarantees may also apply. Landlords may require the business owner to personally guarantee the lease, especially for small businesses.

Learn More About Retail Leasing

Leasing a retail space in a place like Orlando can be exciting, but there are issues to be considered when drafting, reviewing, and negotiating a lease.

Leases are complicated contracts in which the various provisions are often interdependent. A Orlando commercial & retail lease lawyer B.F. Godfrey from Godfrey Legal can provide you with the legal support you need to resolve any problems that may arise with an existing lease. Schedule a consultation today by calling (407) 890-0023 or filling out the online form.

Source:

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