Orlando has emerged as one of the Southeast’s most competitive retail markets, where robust tenant demand and limited supply are driving both leasing velocity and investor urgency. With availability near historic lows below 4 percent and most new construction preleased, the market offers few options for the wave of private and institutional capital targeting Central Florida.
This imbalance is fueled by strong population growth and resilient consumer spending. Quality retail assets continue to trade quickly, while lower-tier properties remain on the market longer. Buyer pricing remains grounded in fundamentals, and the gap between buyers and sellers has narrowed, making deals increasingly feasible.
Investment activity has accelerated in 2025, following 12 to 18 months of steady engagement from private capital. Institutional buyers, including REITs and national funds, are now re-entering the market, primarily targeting stabilized assets in high-growth suburban corridors where tenant rosters offer long-term income visibility. Unanchored and grocery-anchored centers remain in high demand, especially in infill locations with constrained supply and strong population growth.
While investor appetite is strong, today’s environment has created a bifurcated market. Well-located, quality centers continue to trade quickly, often with multiple offers, while less desirable assets linger. 1031 exchange buyers and out-of-state groups remain especially active, competing for stabilized properties in core corridors where development is limited and population growth remains strong.
One of the clearest examples of Orlando’s retail momentum is Hamlin Town Center in Horizon West, a 2 million-square-foot master-planned development by Boyd Development Corp. Anchored by Publix and Urban Air, Hamlin continues to grow with additions such as T.J. Maxx (now under construction), Dutch Bros Coffee and a mix of new medical and quick-service restaurant (QSR) retail pads. Completed in 2023, Hamlin Plaza delivered about 40,000 square feet of retail and medical space to support the rapidly expanding Horizon West community.
Beyond Hamlin, key submarkets such as Lake Nona, Winter Garden and East Orlando are experiencing a surge in tenant demand fueled by residential growth.
National brands including Aldi, Five Below and Raising Cane’s are expanding aggressively, often targeting second-generation space as ground-up construction remains constrained by land scarcity and high building costs.
Farther out, areas like Clermont, Minneola, St. Cloud and Haines City have become emerging retail corridors. These outer submarkets are benefiting from housing spillover, population migration and more accessible land pricing, creating opportunities for developers to meet demand before it pushes even farther from the urban core.
Lease-up velocity remains strong across the metro, even as interest rate volatility continues to shape the broader investment landscape. Orlando’s core fundamentals, including population growth, tourism strength and a diversified economy continue to support long-term retail value.
With institutional capital returning and supply still constrained, pricing pressure for well-located assets is likely to persist into 2026.
— By Tarek Chbeir, Senior Director of Marcus & Millichap. This article was originally published in the August 2025 issue of Southeast Real Estate Business.