Corporations are flocking to secondary cities that offer a lower cost of operating than areas like New York and Los Angeles.
One area that is benefiting from this migration is Orlando, which has started attracting major office users thanks to its affordability, growing economy, and talent availability.
According to the Orlando Economic Partnership, the city is growing at a significant pace.
It’s no wonder why either — Orlando’s cost of living is 5.1% lower than the national average and its tech talent pool has grown by 30% over the last five years.
Disney, KPMG, Sonesta International Hotels Corporation and InnovaCare Health Inc. have all revealed plans to expand their presence in the region or move into the city for the first time.
Disney in particular, which already has a significant footprint in the city, revealed it is moving 2,000 high-wage jobs from California to Orlando.
Northeast-based Sonesta International Hotels, which is the eighth largest hotel chain in the U.S., will open its first corporate office in Orlando.
These moves have had a direct impact on the office market. For instance, KPMG’s 767,000 square foot occupancy during the first quarter of 2020 pushed net absorption to around 366,000 square feet. If this lease hadn’t been completed, absorption would have sat at negative 400,957 square feet.