Challenges Remain as Activity Begins to Return
Throughout the third quarter of 2020, the effects of the economic challenges attributed to COVID-19 continued to impact the Central Florida office market. Like the previous quarter, overall leasing activity within the market remained below average, however, pockets of activity are beginning to return, especially in the suburban markets. Recently completed lease transactions increased by 16.2% from the previous quarter, with the total square footage of those transactions up over 30%. As the pandemic continues, nearly all businesses continue to assess their current and future space utilization plans putting potentially additional pressure on market vacancy. In some cases, occupiers will look to sublease their space as either a short-term reactionary approach or long-term strategy with the hopes and ability to further experiment with flexible or work-from-home employee plans.