Orlando, FL - A downtown staple -- the 17-story, 253,931-squarefoot Lincoln Plaza across the street from Orlando City Hall -- is reportedly under contract in a move some see as another indicator of an upswing in Orlando’s market. Or at least in the downtown area. The price was reportedly $200 a square foot, which commercial broker Mike Beale says is less than the replacement cost of up to $350 two years ago but still is not a genuine “distressed” price. A strong element in its favor is that the building is reportedly over 90 percent leased up. Jay Dixon of Grubb & Ellis is among those predicting more sales activity this year in the downtown Orlando market. The market has also been slow but he predicts more downtown sales because of realistic owners dropping their prices. Downtown has always been popular but high rents have discouraged users. Now, free parking is often being offered as a lure. Other perks here and elsewhere in the area include lower leasing prices and free rent (typically a month for each year of a lease, which is common throughout Orlando). Additionally, some existing tenants are moving out because their leases will be expiring this year. “More lenders stressed to make their payments are trying to sell directly to investors rather than let the banks take over,” he said. There may be more sales activity because there are a lot of longterm, ten-year leases in downtown coming up, said Matthew McKeever, senior director of Cushman & Wakefield.
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