Orlando is becoming a hotspot for retailers, and it's easy to see why. With its rapidly growing population, world-renowned theme parks, and a constant influx of visitors, consumer spending in the area is through the roof.
Over the past year, Orlando ranked second in the U.S. for retail space absorption, significantly reducing its retail availability rate to just 3.6%. That's quite impressive, especially when you consider that the national average is 4.7%. The suburbs of Orlando played a big role in this success, with about one-third of the metro area's total absorption happening there. Areas like Apopka, Pine Hills, Ocoee, Winter Garden, Oak Ridge, Holden Heights, and Holden Lakes in Western Orange County showed particularly strong performance.
Orlando also stands out when you look at retail absorption as a percentage of total retail supply. Among markets with over 100 million square feet of retail space, Orlando's absorption rate of 1.7% is second only to Austin's 1.8%. However, Orlando's growth has been more balanced. The city absorbed 1.6 times the amount of retail space delivered, compared to Austin's 1.1 times.
The city's popularity as a travel destination fuels much of this retail demand. Orlando's theme parks attract visitors from all over the globe, leading to an average quarterly hotel room demand of nearly 117,000 last year—more than any other U.S. market.
Consumer spending in Orlando is also on the rise. Among U.S. markets with at least $100 million in annual consumer spending, Orlando was in the top 10 for growth, boasting a 36% increase. Over the next five years, it is projected to have the seventh-highest consumer spending growth in this group.
Given its status as a top tourist destination and one of the fastest-growing cities in the U.S., Orlando's retail market is expected to stay strong. Retailers looking to expand will likely continue to see Orlando as a prime target due to its strong retail fundamentals.
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