Orlando MSA Market Overview
Transcription
Orlando MSA Market Overview
Orlando MSA Market Overview March 2015 Orlando MSA Market Overview Overview Labor Market Payroll Employment Commercial Real Estate Residential Real Estate Consumer Spending Business Sentiment Transportation Visitor Industry Labor Market Unemployment Rate 14 Orlando’s unemployment rate has been below the national rate since early 2013. However, gains have largely flattened in recent months as improving job prospects begin to encourage people to rejoin or enter the labor force. Through December 2014, Seasonally Adjusted 12 Orlando MSA United States December 2014 Orlando MSA: 5.4% United States: 5.6% 10 8 6 4 2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Labor, Bureau of Labor Statistics Labor Market New Claims for Unemployment Insurance, Orlando MSA Through February 2015, 12-Month Moving Average 12,000 New claims for unemployment insurance have fallen to pre-recession lows; total new claimants in 2014 were in line with those in 2006. 10,000 February 2015: 3,280 2015 YTD: 7,420 8,000 6,000 4,000 2,000 2005 2006 2007 2008 2009 2010 Source: Florida Department of Economic Opportunity, Labor Market Statistics Center 2011 2012 2013 2014 2015 Labor Market New Job Postings, Orlando MSA Through February 2015, Y/Y % Change 25% 20% Labor demand in the region, measured by new online job postings, has moderated in recent months. Advertised (de-duplicated) postings in 2014 were up 11% over 2013. February 2015: 23,769 (-9.1%) 2015 YTD: 48,833 (-5.3%) 15% 10% 5% 0% -5% -10% Source: WantedAnalytics March April May June July August September October November December January February Payroll Employment Hundreds Total Payroll Employment, Orlando MSA Through December 2014, Seasonally Adjusted 1,200 1,150 Nov ’07 – Jan ’10 105,700 jobs lost Jan ’10 - Present 146,200 jobs regained 1,100 1,050 1,000 950 900 850 800 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Labor, Bureau of Labor Statistics In purely employment terms, Orlando’s job market has fully recovered. In early 2014, the region became the first major MSA in the state to regain all jobs lost during the recession. Payroll Employment Change in Payroll Employment Through December 2014, Y/Y % Change, Seasonally Adjusted 8 Local year-overyear job growth has exceeded the nation’s rate for 38 consecutive months. 4 0 -4 Orlando MSA United States -8 2000 2001 Source: U.S. Department of Labor, Bureau of Labor Statistics 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Payroll Employment Employment Growth, Orlando MSA Through December 2014, Y/Y % Change, 3-Month Moving Average Not Seasonally Adjusted 20% 10% All major sectors but financial activities are on a positive trajectory. 0% Retail Financial Activities Leisure & Hospitality Construction Business Services Healthcare Manufacturing -10% -20% -30% 2006 2007 2008 2009 Source: U.S. Department of Labor, Bureau of Labor Statistics 2010 2011 2012 2013 2014 Payroll Employment % Change in Payroll Employment, MSAs > 1 Million Jobs December 2013 – December 2014, Not Seasonally Adjusted Rank Current year-overyear employment growth of 4.3% is second only to Dallas among the 27 MSAs with an employment base of over 1 million jobs. Source: U.S. Department of Labor, Bureau of Labor Statistics MSA % Change 1 Dallas, TX 4.4% 2 ORLANDO, FL 4.3% 3 Houston, TX 4.3% 4 San Diego, CA 3.3% 5 Denver, CO 3.3% 6 Seattle, WA 3.2% 7 San Francisco, CA 3.1% 8 Portland, OR 3.1% 9 Miami, FL 3.0% 10 Phoenix, AZ 2.7% Payroll Employment Job Gains by Industry, Orlando MSA December 2013 – December 2014, Not Seasonally Adjusted 15,700 16,000 14% TOTAL GAIN: 47,500 12.3% 12,000 Net Job Gain (left axis) 9,800 12% 10% Y/Y % Change (right axis) 8% 8,000 7.0% 1,200 4,000 900 0 6,600 6.9% 5.5% 5.5% 3,200 2,800 600 3.3% 6% 4,700 1,800 4% 3.4% 2.8% 2.5% 2.4% 1,100 2% 0.8% 0% -900 -4,000 -1.3% Gov. Oth. Svcs Leis/Hosp. Health Bus. Svcs Fin. Svcs Source: U.S. Department of Labor, Bureau of Labor Statistics Inform. Whse/Util. Retail Wholesale Mfg Const. -2% Of the 22 metros in Florida, Orlando reported the largest over-the-year gains in December in both absolute (+47,500 jobs) and percentage (4.3%) terms. The region’s recovery is evolving and employment gains are now proving more broad-based, with almost all major industries gaining jobs. Payroll Employment Employment Momentum by Florida MSA/MD IMPROVING EXPANDING December 2014, Seasonally Adjusted 10 Size of Bubble = Relative Employment Base ORLANDO 8 The region is showing positive employment momentum entering 2015 and continues to add jobs. Fort Lauderdale 6 3-Month % Change (annualized) Miami 4 Melbourne 2 Jacksonville Tampa West Palm Beach 0 SLIPPING CONTRACTING -2 -2 Source: U.S. Department of Labor, Bureau of Labor Statistics 0 Year-Over-Year % Change 2 4 6 Commercial Real Estate Office Market, Orlando MSA Through 4th Quarter 2014 30% 25% 20% $25 Net Absorption 2011 = 545,623 2012 = 302,110 2013 = -133,255 2014 = 74,000 Total Vacancy (left axis) Average Direct Asking Rate (FSG, right axis) $23 $21.93 $21.52 19.7% $20.94 20.1% 19.0% 19.1% 19.4% 19.0% $20.62 $21 $20.02 14.0% 15% $19.72 $19.60 $19.62 $19.98 10.9% $19 10% 7.2% $17 5% $15 0% Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Source: CBRE Orlando’s office market fundamentals continue to strengthen, punctuated by a lack of large spaces and rising rents; however, a growing trend toward more dynamic workspaces and smaller footprints is limiting occupancy gains. Commercial Real Estate Industrial Market, Orlando MSA Through 4th Quarter 2014 25% Amid a trend of decreasing vacancy, positive net absorption and rising rates speculative development has returned to the industrial market – the story of 2014. Net Absorption 2011 = -51,626 2012 = 2.9m 2013 = 1.4m 2014 = 1.8m Total Vacancy (left axis) Average Direct Asking Rate (NNN, left axis) $6.93 $6.06 20% $5.72 $5.35 $5.14 15.7% 15% 15.8% $6 $5.23 15.6% $8 $4.94 $4.97 $5.21 13.2% 11.5% 11.7% $4 9.9% 10% 7.1% 7.3% $2 5% 0% $0 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Source: CBRE Residential Real Estate Y/Y % Change 3-Month Moving Average Home Sales vs. Median Home Price, Orlando MSA Through January 2015 100% 80% 60% 12-Month Moving Average 4,000 Median Sales Price (left axis) Homes Sales (right axis) 3,000 40% 20% 2,000 0% -20% 1,000 -40% 0 -60% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Orlando Regional Realtor Association Home sales have an opportunity over the next 12 months to settle into a pattern of more traditional growth as the impact of both institutional investment and distressed sales wanes. Residential Real Estate Housing Permits, Orlando MSA Units Authorized, Through January 2015 12-Month Moving Average Annualized Rate 30,000 Reports of a construction bubble appear premature. Although both single and multi-family permitting are on the rise, total activity remains below historic norms. 25,000 Single-Family Units Multi-Family Units 20,000 15,000 10,000 5,000 0 2000 Source: U.S. Census Bureau 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Consumer Spending Orlando MSA Retail Index vs. Florida Consumer Confidence Through November 2014 180 150 Florida Consumer Confidence (left axis) Orlando MSA Retail Index (right axis) 170 160 130 Tourism & Recreation: +8.1% YTD Consumer Non-Durables: +4.6%YTD Consumer Durables: -0.2% YTD 150 140 110 130 120 90 110 100 70 90 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 80 Source: University of Florida, Bureau of Economic & Business Research; Florida Legislature, Office of Economic & Demographic Research Buoyed by strong tourism gains, consumer spending in the region is outperforming statewide consumer confidence. Business Sentiment Taxable Sales – Business Investment, Orlando MSA Through November 2014 Y/Y % Change, 3-Month Moving Average 30% Renewed confidence among local business in the future is also evident. Local business investment (in equipment and technology, for example) is up over 9% year-to-date. 2013 YTD: $6.7 billion 2014 YTD: $7.3 billion 20% 10% 0% -10% -20% -30% Jan-05 Source: Florida Department of Revenue Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Transportation Passengers - Orlando International Airport Through January 2015, Y/Y % Change 10% Domestic January 2015: 2.7 million (+8.4%) 2015 YTD: 2.7 million (+8.4%) TOTAL January 2015: 3.1 million (+8.8%) 2015 YTD: 3.1 million (+8.8%) Passenger traffic through Orlando International continues to strength. International travel hit a record 4.3 million in 2014, increasing 9.6% from 2013. 8% International January 2015: 0.4 million (+11.6%) 2015 YTD: 0.4 million (+11.6% 6% 4% 2% 0% -2% February March April Source: Greater Orlando Aviation Authority May June July August September October November December January Transportation Passengers - Orlando Sanford International Airport Through February 2015, Y/Y % Change 25% 20% 2014 passenger traffic through Orlando Sanford surpassed 2013 levels by 7.5%. February 2015: 167,314 (+5.7%) 2015 YTD: 334,539 (+7.4%) 15% 10% 5% 0% -5% Source: Sanford Airport Authority March April May June July August September October November December January February Visitor Industry Hotel Occupancy vs. Average Daily Rate, Orlando MSA Through January 2015, Y/Y Change 10 10% January 2015 Occupancy: 76.1% (+3.9pp) ADR: $113.90 (+3.5%) Hotel Occupancy (left axis, pp) Average Daily Rate (right axis, % change) 8 8% 6 6% 4 4% 2 2% 0 February Source: Visit Orlando March April May June July August September October November December January 0% Aided by both significant investment in new attractions and demand from South America, growth in local tourism shows no sign of abating. Room demand continues to outpace GDP while rates are nearing pre-recession levels. Business Intelligence [email protected]