Central Florida Healthcare Market Report Q3 2026

Orange, Osceola, Seminole, Lake, Sumter, and Polk Counties

Central Florida’s healthcare market (accounting for Orange, Osceola, Seminole, Lake, Sumter, and Polk counties) demonstrated stable fundamentals in Q3 2026, supported by positive absorption and continued rental growth. Vacancy stood at 6.4%, while asking rents increased 5.1% year over year to $36.60/SF. Construction activity was measured, with new deliveries closely aligned with tenant absorption, helping balance supply and demand. Investment sales totaled $112.8 million, reflecting ongoing transaction activity across the region. Overall, the market exhibited steady leasing conditions alongside continued development and investment interest.

 

Highlights

• Leasing fundamentals show stability, with positive absorption reflecting continued demand for healthcare space despite new inventory entering the market.
• Rental growth maintains momentum, as rising asking rents and relatively steady occupancy conditions support leasing fundamentals.
• Investment activity persists, with transaction volume highlighting ongoing investor participation in Central Florida’s healthcare real estate sector.

 

Central Florida* Demographics

Source: Matthews™ Research, Census Bureau of Labor Statistics

• Population: 3,990,234
• Households: 1,382,058
• Median Household Income: ~$76,000

*Orange, Osceola, Seminole, Lake, Sumter, and Polk Counties

 

 

Central Florida Healthcare Rents, Vacancy, and Construction

Rents

Asking rents reached $36.60/SF in Q3 2026, representing 5.1% year-over-year growth. This increase highlights continued upward pressure on rental rates despite a vacancy rate of 6.4%. Positive absorption alongside rising rents suggests that healthcare tenants continue to support leasing demand, allowing landlords to maintain rental growth amid relatively balanced occupancy conditions.

 

Market Asking Rent Per SF

Source: CoStar Group, Inc.

 

Vacancy

Vacancy stood at 6.4% in Q3 2026, reflecting relatively stable occupancy conditions. Positive net absorption of 66,186 SF indicates continued demand for medical office space, although new deliveries slightly exceeded occupied space gains. This balance suggests that leasing activity is largely keeping pace with new supply, helping maintain steady market conditions.

 

Vacancy Rate

Source: CoStar Group, Inc.

 

Construction

Construction activity remained measured, with 188,374 SF under construction and 69,536 SF delivered. Net absorption totaled 66,186 SF, nearly matching new completions and indicating that demand is keeping pace with recent inventory additions. While the development pipeline represents additional space entering the market, the close alignment between deliveries and absorption suggests limited immediate pressure on overall vacancy.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Central Florida Healthcare Sales

Central Florida’s healthcare investment market recorded $112.8 million in sales volume during Q3 2026, with an average transaction price of $384/SF. Cap rates averaged 7.3%, reflecting prevailing investment yields across the region. Transaction activity highlights continued investor participation in the healthcare real estate sector, while pricing suggests that buyers continue to place value on medical office assets.

 

Sales Volume & Market Sale Price Per SF

Source: CoStar Group, Inc.

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By the Numbers

Q3 2026 | Source: CoStar Group, Inc.

• Sales Volume: $112.8M
• Cap Rate: 7.3%
• Price Per SF: $384
• Vacancy Rate: 6.4%
• Rent Growth (YOY): 5.1%
• Asking Rent Per SF: $36.60
• SF Under Construction: 188,374
• SF Delivered: 69,536
• AF Absorbed: 66,186