Vacancy Rates Show Strength of Orlando Real Estate Market

A new report released by ProLogis Research Group in September claims that the Orlando real estate market is one of ten markets nationwide to have fully recovered "from the steep 2001-03 downturn."

Orlando real estate rental costs "have leveled off, with rent concessions such as free rent fading," yet the strong surge in demand for Orlando real estate that began at the end of 2004 has continued throughout 2005.

A primary reason for the strengthening of the Orlando real estate market is the drop in vacancies during the first half of 2005. Vacancy rates for the top 30 U.S. markets, including Orlando, "declined to 9.0% at midyear 2005 from 9.7% at year-end 2004 and 10.2% at midyear 2004." In other words, the Orlando real estate market´s saving grace is that it has "entered into that stage of the real estate cycle where pent-up demand completely overshadows new supply and drives the vacancy rate lower."