In the fourth quarter of 2024, the Orlando office market had the first quarter of positive absorption in four years, according to a recent Colliers market report. The market, like many across the nation, has navigated a period of recalibration in the wake of the pandemic and evolving work trends.
Yet, a shift in tenant activity has signaled renewed leasing demand across the office landscape. In the fourth quarter, net absorption in the Orlando office market reached a positive 95,843 square feet. This is a significant improvement compared to the same period in 2023, which had a negative absorption of 297,714 square feet.
Interestingly, it is the submarkets outside of Orlando’s central business district (CBD) that are shining. This is evident in two recent deals that are having a profound impact on the market.
In December, we represented the seller when Charles Schwab purchased the Maitland Summit Office Park for $122 million. This was the largest office deal in Central Florida since 2021 and removed 500,000 square feet of Class A office space from the Maitland submarket, which is about 10 miles north of downtown Orlando.
Around the same time, Mitsubishi signed a lease for 109,000 square feet in Lake Mary, about 20 miles north of Orlando’s CBD.
These transactions significantly tightened availability in these submarkets and are driving notable change in the overall Central Florida office market.
Flight to quality
Driving demand is a resurgence of in-person work and a flight to quality as employers look to lease spaces that will incentivize employees to come back to the office. For the past three years, office users opted for short-term leases as they grappled with an uncertain future. Now, businesses are prioritizing bringing employees back to the office and recognizing that their existing locations may no longer align with their needs.
In Orlando, the demand for top-tier office space remains strong. The vacancy rate for Class A properties dropped to 14.3 percent as tenants that leased during the year now start to occupy their space. In contrast, Class B properties saw a slight uptick in vacancies, now sitting at 11.5 percent.
This underscores the desirability of modern, well-amenitized spaces. Employers recognize that if they want employees back in the office, they must offer amenities that are not available at home.
Maitland and Lake Mary
While the overall Orlando office market is strong — especially compared to other markets across the country — the real story lies in Maitland and Lake Mary.
The Charles Schwab deal removed 19.2 percent of Class A office space from the Maitland submarket and leased up the remaining Class A space in that submarket larger than 15,000 square feet. The deal also underscores the desirability of Central Florida, given the size of the investment Charles Schwab, a Fortune 500 company, has made here.
The absence of new supply in Maitland has left tenants with older inventory that fails to meet their evolving needs. This has caused tenants to look elsewhere for Class A space, which is having a ripple effect in the rest of the Central Florida office market. Lake Mary is set to benefit from this.
The overall vacancy rate in Lake Mary stands at 17 percent and Class A vacancy is at 19.4 percent, compared to 13.4 percent for Class A vacancy in Maitland. Abbott Labs, a former tenant in the Charles Schwab building, has already moved its operation to Lake Mary, leasing a 66,000-square-foot space in that submarket.
Interestingly, in the past, tenants have focused on a location because of where their employees live. Now, we’re seeing more willingness from users to shift geographically to secure Class A space.
A case for new construction
In nearby Winter Park, roughly five miles north of the Orlando CBD, current market conditions are supporting new construction. That submarket had a remarkably low office vacancy rate of just 3.8 percent.
Demand in the market led to McCraney Property Co. breaking ground on a three-story mixed-use project in January. The development will feature nearly 30,000 square feet of space, including Class A office space on its upper floors, and will also house the firm’s headquarters.
Advice for users
For users looking for Class A office space in the Orlando market — particularly in suburban submarkets like Maitland, Lake Mary and Winter Park — the time to act is now. In today’s market, the adage “time kills deals” rings particularly true. Hesitation can lead to missed opportunities, as available spaces are quickly being absorbed. Proactive engagement and decisive action are crucial for securing Class A office space in active Central Florida.
— By Rick Solik, MCR, and Matthew McKeever, CCIM, SIOR, Executive Managing Directors of Office Services for Colliers in Central Florida. This article was originally published in the September 2025 issue of Southeast Real Estate Business.