SOUTHEAST SNAPSHOT, NOVEMBER 2006

Orlando, Florida Multifamily Market

In Orlando, a major trend continues to be the conversion of apartment communities to condominiums. Typically, they are aimed at first-time homebuyers and second-time homebuyers looking for an affordable housing option. These properties provide buyers ease of living, resort-style amenities and a convenient location.

A second major trend is new construction targeted to the move-up buyer and the affluent empty-nester seeking greater square footage, luxury appointments, high-level service and outstanding architectural design.

And finally, as the Orlando market matures, developments are offering more elaborate amenities, higher quality finishes and increased service levels. As the market becomes savvier and saturated with new developments, developers will continue to raise the bar for amenity levels and create new property features.

New construction condominiums in College Park, Winter Park and Maitland will provide a range of options for various types of buyers – from first-time homebuyers to affluent empty nesters – that seek a walking neighborhood with services, shopping and entertainment. The majority of new condominium construction is taking place in downtown Orlando, College Park, Winter Park and Maitland. Condominium buyers want to live close to work, and near cultural, dining and shopping venues that they can enjoy on a daily basis.

There is also a significant amount of new construction taking place near the attractions at Disney, Universal and Orlando Civic Center. Many of these developments are attracting foreign investors and second home buyers who may be interested in leasing their condominium when they are not using it.

Jaymor Group, a Toronto, Canada-based development company is entering the downtown Orlando market with The Monarch, a 179-unit, 23-story high-rise condominium development ideally situated in the heart of downtown Orlando’s Eola South District on Jackson, South and Liberty streets. 

Today’s developers are looking to attract empty nesters and baby boomers that want to buy second homes. Also, buyers are purchasing their retirement home now and may treat it as an investment property for the next several years – until they can retire and permanently move to Florida.

Moreover, as Orlando continues its emergence as Florida’s second international city after Miami, developers are attracting considerable interest from foreign buyers.

The price range for condo conversions starts at $150,000; new construction properties are starting at $300,000 to more than $1 million; and luxury condos start at $450,000 to $550,000.

The bulk of the development activity remains downtown, but an area that deserves watching for the next few years is the Orlando Civic Center area. A large master-planned development by Thomas Enterprises and a condominium development by Wood Partners are is underway there.

This area has the potential to develop into a smaller, but similar version of Las Vegas, namely condo-hotels with large performing arts spaces. Condo-hotel developments are significant in supporting the growing Orlando convention and tourist market, as these properties will provide centrally located entertainment and dining facilities near the civic center. 

The Orlando market continues to lead the state in condominium sales due to a strong job market, wide range of product and price ranges attracting first-time homebuyers, move-up buyers, second home buyers, empty nesters and investors. Orlando, like many cities throughout the country, is seeing strong demand for a return to the urban core and continues to be fed by a myriad of buyer demand points.

— Brad Horner is executive vice president of Coldwell Banker The Condo Store in Orlando, Florida.

©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.