Office vacancy rate flat in first quarter

Even with several technology firms taking space in downtown Orlando's Church Street Exchange, office leasing in Metro Orlando didn't start the year in a growth mode, a new report shows.

The region had a net loss of more than 60,000 square feet of office space during the quarter, and vacancy rates were almost flat, increasing from 17.9 percent to 18 percent. Of seven submarkets, only the downtown area, Lake Mary and the University of Central Florida area saw increases in occupancy, according to the report by commercial real-estate brokerage JLL.

"We still see a little flight from the suburbs to downtown, but it's slowed, and we're still seeing some corporate right-sizing, and that's mostly out in the suburbs," said Yvonne Baker, JLL vice president for Central Florida. "We're working with a group on the east side of the county that's consolidating four offices into one."

Rental rates averaged $23.80 a square foot in downtown Orlando, where the vacancy rate was 15.7 percent. The most affordable market for office space was Altamonte Springs, which had an average asking lease price of $16.36 a foot. The priciest suburban market was Lake Mary, with an average asking price of $20.57 a foot.

Sales

Morrison Commercial Real Estate completed the $1.1 million sale of a manufacturing/office building with 19,980 square feet at 120 Maritime Drive, Sanford. Christi Davis, vice president at Morrison, represented the seller, Carl W. Brantley Jr. Trustee. The buyer was MMCC LLC, managed by Jay Meagher of Longwood.

A former Steak & Ale restaurant at 7320 W. Colonial Drive, Orlando, sold for $880,000. The seller was Colonial-Dorscher Properties LLC, managed by Jerome Unatin. The buyer, Tres Hermanos LLC, plans to open a restaurant there. Alanna Hogan and Paul Hoffman of Coldwell Banker Commercial NRT represented the seller. Yeison Sanchez with Urban Square Realty represented the buyer.

Hotel approval

Lake County commissioners voted unanimously last week to approve land-use changes that would allow a hotel at the Bella Collina country club community in Montverde. DCS Real Estate Investments LLC applied for the changes to build The Lodge at Bella Collina, which would include 100 units on County Road 415. Construction is scheduled to start in early 2015.

Leases

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Office vacancy rate flat in first quarter