Cap Rate Research / Retail
Orlando Retail Cap Rates by Submarket — 2026
Orlando retail cap rates remain among the most resilient asset classes in the Central Florida market. Single-tenant NNN retail trades 5.25% – 6.75% for credit-tenant product on long-term leases, while multi-tenant neighborhood and shadow-anchored retail trades 6.5% – 8.0% depending on lease-up risk and credit mix. Premium street retail in trophy locations (Park Avenue, Edgewater/Mills) compresses to 5.5% – 7.0%.
Retail Cap Rates by Central Florida Submarket
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| NNN Retail | 5.25% - 6.25% | → Stable | Credit-tenant QSR and services dominate. |
| Mixed-Use Retail | 6.25% - 7.25% | → Stable | Higher cap rate reflects lease-up risk in newer developments. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Street Retail | 6.25% - 7.5% | → Stable | F&B and experiential retail dominate tenant mix. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Retail (Park Avenue) | 5.5% - 6.75% | ↑ Firming | Trophy retail trades at premium cap rates. |
| Neighborhood Retail | 6.5% - 7.75% | → Stable | Well-leased neighborhood centers remain liquid. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Tourist-Corridor Retail | 6.0% - 7.5% | → Stable | Credit tenant QSR trades tighter. |
| Restaurant Real Estate | 5.75% - 7.25% | → Stable | Drive-thru and pad sites in highest demand. |
| Entertainment Box Space | 7.5% - 9.0% | ↓ Softening | Location-dependent and operator-driven. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Premium Retail | 5.75% - 7.0% | ↑ Firming | High-quality retail trades at premium pricing. |
| Restaurant Real Estate | 5.5% - 6.75% | ↑ Firming | Limited supply of quality restaurant locations. |
| Neighborhood Center | 6.5% - 7.75% | → Stable | Grocery-anchored product remains liquid. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Retail (Shadow-Anchored) | 6.25% - 7.5% | → Stable | Strong tenant demand from Millenia traffic. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Street Retail (Edgewater/Mills) | 5.75% - 7.25% | ↑ Firming | Limited inventory and high tenant demand compress cap rates. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Premium Retail | 6.0% - 7.0% | ↑ Firming | High-income households drive premium tenant demand. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Retail (Waterford Lakes) | 6.0% - 7.25% | → Stable | Power center fundamentals remain strong. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| Neighborhood Retail | 6.75% - 8.0% | → Stable | Population growth supports new retail. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| NNN Retail (New Build) | 5.5% - 6.5% | ↑ Firming | National credit tenants on long-term leases. |
| Segment | Cap Rate Range | Trend | Notes |
|---|---|---|---|
| NNN Retail Pad | 5.75% - 6.75% | ↑ Firming | Credit-tenant QSR and convenience pads in highest demand. |
| Multi-Tenant Retail | 7.0% - 8.5% | → Stable | Lease-up risk on newer centers. |
Retail Cap Rate FAQ
What is a good cap rate for retail property in Orlando?
Single-tenant NNN retail with credit tenants in Orlando trades 5.25% – 6.75%. Multi-tenant neighborhood retail trades 6.5% – 8.0%, and premium street retail in trophy submarkets like Winter Park trades 5.5% – 7.0%. The 'right' cap rate depends on tenant credit, lease term, and submarket strength.
Are Orlando retail cap rates firming or softening?
Most credit-tenant NNN retail and pad sites are firming due to limited supply and strong 1031 demand. Neighborhood and multi-tenant retail is stable. Power centers and shadow-anchored retail remain liquid with consistent investor interest.
Which Orlando submarkets have the tightest retail cap rates?
Trophy street retail in Maitland/Winter Park (Park Avenue) and infill retail in College Park/Mills 50 (Edgewater corridor) compress tightest, typically 5.5% – 7.0%. Tourist-corridor retail on International Drive trades 6.0% – 7.5% for credit-tenant QSR.