Exploring the Best Retail Space for Sale
There is a diverse range of commercial retail space for sale in the Greater Orlando, Florida area catering to various business needs and investment scales. If you’re looking for a space for your retail business, there is an ideal location for you in Orlando.
Retail Space for Sale
The Orlando Metroplitan Area (MSA), encompassing Orange, Seminole, Lake, and Polk Counties, is a vibrant and dynamic market for retail properties. Driven by a fast-expanding population, a resilient economy, and robust tourism, this region offers exciting investment opportunities for both local and national investors.
Variety in Size and Type
Retail space for sale in Orlando, Florida varies from small storefronts to large commercial plazas. Options include turnkey restaurants in Metro West, standalone stores on Orange Blossom Trail, and mixed-use spaces like East Orlando Boat & RV Storage.
Strategic Locations
Much of Orlando’s retail space for sale is situated in prime locations with high visibility and traffic, such as the signalized intersection at Narcoossee Rd, offering a Starbucks with a drive-through, or the Ivanhoe Village Retail, boasting an irreplaceable location with annual increases.
Investment Opportunities
Real estate investors looking to buy commercial retail space with successful businesses in place as an investment can find a variety of opportunities. They range from absolute NNN leases with corporate-grade tenants in Oviedo, Florida to properties in opportunity zones offering potential tax benefits, like the vacant QSR (Former Pollo) drive-through equipped space.
Scope for Various Ventures
The scope for a new business venture in a retail space for sale is broad, accommodating various business models. This includes quick-service restaurants with strong sales on Dardanelle Dr, doggie daycare and boarding businesses with established clientele, and even a hot pot restaurant in the tourist corridor, emphasizing Orlando’s appeal to diverse consumer bases.
Market Overview
Population Growth and Consumer Spending
Orlando’s commercial retail demand remains steady, fueled by its growing population and strong consumer spending. The metro area’s tourism sector contributes to foot traffic in prime hospitality areas, making it an attractive destination for retailers. Despite challenges faced by the national retail sector, including operational costs and shrinkage, Orlando continues to thrive.
Quality Space Constraints
One of the most significant challenges in Orlando’s retail market is the scarcity of quality retail space for sale available for retailers looking to expand. Larger-box vacancies in key corridors are becoming increasingly rare. In fact, there’s less available space now than ever before. The population growth rate of 1.6% in 2023 further intensifies the demand for suitable retail properties.
Current Construction and Rents
Currently, only 1.3 million square feet of commercial retail space is under construction in Orlando. This follows a year that saw a modest 1.9 million square feet of new retail space completed. Strip centers and general retail properties have experienced the most significant rent growth, with annual rates reaching 7.9% as of Q4-2023. Operating costs play a role in driving up rents, disproportionately affecting smaller tenants who bear rising common area maintenance expenses.
Forecast and Deal Activity
While rent growth may have peaked, the market remains active. Orlando saw approximately 420 commercial retail property sales in 2023. Smaller deals below $5 million accounted for around 80% of transactions, while larger deals above $10 million were relatively scarce.
Interest in the Greater Orlando, Florida’s retail sector remains strong due to its buying power growth, tourism spending, and steady consumer activity. Certainly, there’s a retail space for sale that meets your vision for a retail business or investment
Retail Space Trends
Post-Pandemic Recovery
Orlando, Florida’s retail sector weathered the storm of the pandemic and emerged stronger. Consumer spending rebounded, and foot traffic returned to pre-pandemic levels. The essential nature of grocery-anchored shopping centers ensured consistent footfall, benefiting smaller inline stores.
Construction and Absorption
The inventory or retail space for sale in Orlando has expanded by approximately 8% over the last decade. Net absorption has more than offset supply additions, indicating a sector in recovery. Developers exhibit discipline, with new projects comprising only 0.7% of the total market’s inventory.
Notable Developments
Several significant developments are on the horizon, including the 35-acre WaterStar Orlando mixed-use project, the $1 billion Everest Place resort, and the $60 million redevelopment of the Formosa Gardens Shopping Center. These projects, along with others like Celebration Pointe and O-Town West, promise exciting commercial retail opportunities.
Investor Confidence
Private buyers dominate the market, purchasing approximately 80% of the retail space for sale in recent years. Notable transactions include CORE Investment Management’s acquisition of the Publix-anchored Williamsburg Downs Shopping Center for $28.8 million. Anchor boxes vacated by SteinMart and The Fresh Market are being replaced, reflecting investor confidence.
Conclusion
Orlando’s retail landscape is a dynamic blend of growth, resilience, and opportunity. As the region continues to outperform the national economy, investors and retailers alike can explore a diverse range of retail spaces in this thriving MSA.
In conclusion, the Greater Orlando, Florida retail market presents a spectrum of commercial real estate opportunities, from small-scale investments to significant ventures, each with its unique advantages and potential for growth.
Whether it’s a high-traffic location or a specialized business model, Orlando’s retail market caters to a wide array of investor and business needs. The current listings of retail space for sale reflects a healthy, dynamic market poised for continued development and success.
