Why is Orlando retail vacancy so much lower than the national average?

Orlando retail vacancy at 3.7% is approximately 450–500 basis points below the national retail average of roughly 8–8.5% — a gap that is structural rather than cyclical, and that has persisted through multiple economic cycles. Two independent demand drivers explain it. First, tourism demand: Orlando draws approximately 76 million annual visitors, making it the largest tourism market in the western hemisphere. Tourism-driven retail on International Drive and the US-192 corridor is demand that does not correlate with local economic cycles — recession-resistant international and domestic tourist traffic continues flowing regardless of local unemployment or consumer confidence. Second, population growth: Orlando metro adds approximately 1,500 net new residents per week, creating continuous demand for daily-needs retail (grocery, pharmacy, F&B, personal services, fitness) that must be served locally. Unlike e-commerce, daily-needs retail cannot be displaced online — a Horizon West resident cannot order a haircut or a restaurant meal and receive it without visiting the location. The combination of e-commerce-resistant tourism retail and daily-needs population-driven retail creates a demand base that consistently absorbs new supply before vacancy can build. Epic Universe’s opening in May 2025 has added a third demand driver that will take 3–5 years to fully price into tourist corridor rents and cap rates.