SNAPSHOT, APRIL 2004

Orlando Retail Market

Bobby Palta
Executive Director of
Market Analytics & G.I.S.
Colliers Arnold
The Central Florida market is the fastest growing MSA in Florida. The population at third quarter 2003 was 1.82 million and projections show 57,596 people will move to the area each year. This results in a 5-year population growth rate of 15.8 percent — the third highest in the state; however, the same 5-year growth rate translates to 287,982 people, which is first in the state in terms of absolute population growth. Not only is Orlando the fastest growing market in Florida, it is the most popular tourist destination in the world. With all of this growth comes retail development — lots of retail development. The 53 million-square-foot retail market has more than 2.7 million square feet under construction and more than 4.5 million square feet in the proposal stages. New development shows no signs of slowing down.

Town centers are very much in vogue with consumers right now, and developers are capitalizing on this trend. These open-air, streetscape projects are fast becoming the norm for new developments larger than 200,000 square feet. Many of these projects have office components to them as well.

The downtown area is seeing a real revival, with more than 3,500 residential units recently completed or in the development pipeline. The Plaza, The Sanctuary and Uptown Center are all mixed-use projects with sizeable retail components that will add to the quality of life for downtown residents.

The most interesting project in the development pipeline right now is The Plaza, a mixed-use development currently underway at Orange Avenue and Church Street in the core of the central business district. This project will bring a 12-screen movie theater to downtown, as well as 370,000 square feet of office condos, 53,000 square feet of street-level retail, 300 condominiums and a parking garage. The Plaza is sure to lure residents from all over the region to downtown from competing town center developments. The developer of the project is Cameron Kuhn, an Orlando resident who has been extremely active in the redevelopment of downtown Orlando with a number of rehab projects in the CBD. This will be his largest development yet.

The Baldwin Park Village Center is nearing completion in the middle of what is currently the largest redevelopment of a naval base in the United States. This Publix-anchored project is already leased up and will bring an interesting dynamic to this part of the city.

The Millenia submarket continues to increase, with new retailers opening all the time. Olive Garden, T.G.I. Friday’s, Mimi’s Café and Krispy Kreme have all recently opened locations around the mall’s periphery. Circuit City is planning a new location just west of Millenia Boulevard. Millenia Plaza II is now complete with Marshalls, Pier 1 Imports, Petco and other retailers all open and doing well.

The Sembler Company plans a 1.3 million-square-foot open-air center at SR 535 and the Western Beltway near Stoneybrook West. This center will be the west side equivalent of the Waterford Lakes project, a 1.2 million-square-foot center at 100 percent occupancy. This will affect the nearby West Oaks mall and the West Colonial arterial strip, as that is where the current concentration of retail is for this side of town.

Colonial Properties Trust’s Colonial Town Park in Lake Mary has finished construction, with new tenants taking occupancy. This town center features a 12-screen theater, Albertsons, Mama Fu’s Noodle House, and several upscale restaurants and retailers such as Chico’s and Ann Taylor Loft. This center will complement the office and residential components to Colonial Town Park, while giving an upscale “downtown type” destination to the residents of Lake Mary and Heathrow.

Veranda Park, a development by Veranda Partners LLC, is seeing construction come to a close on its first phase of office condos. The retail component should get underway later this year. This development is planned to be a world-class mixed-use project.

Intram Development is planning Mall 27, a power center at the intersection of U.S. 27 and U.S. 192 in the Four Corners area. This project will add to the planned Wal-Mart Supercenter just north of this intersection. This is a huge deal for the residents of this area, who have no convenient shopping other than a couple of grocery stores.

Also along the Highway 27 corridor, Victor Posner City Center is seeing some activity. The long dormant Baseball City property is now being redeveloped into a mixed-use property with office, residential and retail components.

Central Florida is growing in every direction. Orlando is not constrained by physical barriers, and it has an ever-increasing demand for housing and business locations. Retail development follows the new rooftops.

A hot new intersection that will be a hub for new development is the area around John Young Parkway and Osceola Parkway. Lowe’s Home Improvement Warehouse and BJ’s Wholesale Club have recently opened their doors on the southeast corner of the intersection, and on the northwest corner, The Wilder Company is planning The Loop, which will be a movie theater-anchored power center. Regal Cinemas has signed at the 440,000-square-foot development in northern Osceola County. Local developer Pelloni Development is planning a competing project at SR 417 and John Young Parkway. This corridor will pull more action away from the U.S. 192 corridor, which is currently the retail corridor for northern Osceola County.

The Clermont region continues to grow at a staggering pace. More than 15,000 residential units are entitled in this area, and retailers are taking notice. SuperTarget, Publix, Home Depot, Wal-Mart and Kohl’s have built or are building locations in this market, along with CVS/pharmacy, Walgreens, Ruby Tuesday and Crispers. Look for growth to continue as there will soon be a new interchange with the Florida Turnpike to serve south Lake County.

To the east, the growth continues down Alafaya Trail in the Waterford Lakes area. Avalon Park is a hot area at present with around 2,000 units under construction this year. A new Publix-anchored center is under construction in the town center. Further east, along Highway 50, new homes are going up in Wedgefield.

Southeast Orlando is undergoing a surge in development surrounding the Lake Nona area. Retail developers are chasing a handful of sites in this market, which is situated along the 417 Beltway at the BeeLine Expressway, with good access to the Orlando International Airport.

In the north, the recently completed St. Johns River Bridge is increasing residential demand in neighboring Volusia County. The bedroom communities of Orange City, Deland and Deltona are seeing more activity with the improvements in transportation routes. Heathrow, Lake Mary and Sanford also continue to see increased growth in the upscale developments that are taking place there. Oviedo is growing into neighboring Chuluota, and the downtown area is waiting for construction to begin on a mixed-use development.

Bobby Palta, executive director of market analytics & G.I.S.; Kane Morris Webster, retail specialist; and Jeff Mason, retail specialist, with Colliers Arnold - Orlando contributed to this article.

BELZ PROVIDES ORLANDO VISITORS WITH MULTIPLE RETAIL OPPORTUNITIES

More and more, Orlando vacationers are taking time out of their busy park-hopping schedules to enjoy alternate entertainment and take in the shopping scene. In their pursuit for variety, these visitors usually make their way to International Drive, a 3-mile strip known for its many shopping, dining and entertainment options. At the forefront of these activities is an array of options offered by Festival Bay at International Drive, Belz Designer Outlet Centre and Belz Factory Outlet World.

As Orlando’s newest lifestyle retail and entertainment venue, Festival Bay at International Drive offers an environment where visitors can shop and relax. The property is unique in that each of the anchor tenants is new to the Orlando market and not a typical mall department store. Anchors include Bass Pro Shops Outdoor World, Cinemark 20 movie theatres, Vans Skatepark, Steve & Barry’s University Sportswear, Sheplers Western Wear and Ron Jon Surf Shop. Several new venues have recently joined the lineup of retailers at Festival Bay at International Drive, including Image Leather, Fiore, Del Sol and Subway.

Belz Designer Outlet Centre features 45 of the hottest designer outlets at discounted prices. Coach, Ann Taylor Factory Outlet, Polo Ralph Lauren Factory Store and DKNY are among the top name-brand retailers.

At the end of North I-Drive, Belz Factory Outlet World boasts more than 200 outlet retailers, assuring a store for all shopping needs. Brand-name outlet retailers, including Casual Corner Outlet, Levi’s® Dockers® and XOXO, offer great everyday savings. Special events, such as sidewalk sales and the annual fall weekend tent sale, offer shoppers discounts that exceed the everyday savings of up to 75 percent off retail prices.


©2004 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.




Search Property Listings


Requirements for
News Sections



City Highlights and Snapshots


Editorial Calendar



Today's Real Estate News