Central Florida · 2026 Outlook
Office Investment Outlook 2026
Class A, Class B, medical office, and flex space across Orlando, Maitland, Lake Mary, and the broader Central Florida market.
Central Florida office has stabilized after the post-pandemic reset. Class A fundamentals in top suburban submarkets (Lake Mary, Maitland, Winter Park) remain firm, while downtown Orlando continues to work through Class B vacancy. Medical office remains the strongest performer.
Cap Rate Snapshot
Class A suburban office prices from 7.5% to 9.0%. Class B pricing runs from 8.5% to 10.5% with value-add scenarios in the 11%+ range. Medical office trades tightest at 5.75% to 7.25% for credit-tenant product.
Rent Growth
Rent growth is positive but modest in most submarkets. Class A fundamentals support 2-3% annual escalations on new leases. Class B product continues to see concessions on larger deals.
Supply & Demand
New office construction has slowed to a trickle. Net absorption is positive but uneven — concentrated in medical, financial services, and professional firms. Tenant demand for amenitized Class A space remains strong.
Key Trends
- ▸Medical office remains the strongest office subcategory in Central Florida
- ▸Lake Nona continues to absorb Class A office tied to the medical economy
- ▸Class B repositioning (office-to-residential) is being explored in select markets
- ▸Flex and executive suite formats continue to attract smaller tenants
Risks
- ⚠Remote and hybrid work patterns still influencing tenant footprints
- ⚠Older Class B vacancy persists in select submarkets
- ⚠Tenant improvement costs have risen, pressuring landlord returns on new leases
Forward Outlook
The Central Florida office market in 2026 offers selective opportunities for disciplined investors. Medical office remains the safest play. Value-add Class B investors willing to underwrite lease-up or conversion can find attractive entry points. Class A suburban office in top submarkets continues to offer stable long-term cash flow.
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