UPDATED: MAY 15, 2018 2:30 PM — A Walt Disney Company affiliate paid $12.5 million on Monday for a single-tenant office building in Orlando's tourism corridor, which it has long leased for its Disney Reservation Center.
Located at 7100 Municipal Drive, roughly two blocks south of N. International Drive, the 8.27-acre parcel features a single-story office building with close to 100,000 square feet of conditioned area. The sale included an adjacent 5-acre parking lot.
Walt Disney Co., a Fortune 100 company, has leased the building since 1992. It and the former owner conducted a series of interior alternations and renovation work in 2014.
The seller was AAA Global Investment, an investment vehicle for Orlando-based individual Huicun Qiao, which previously paid $7.34 million in September 2013. Qiao declined to comment Tuesday on the transaction, citing a non-disclosure agreement.
Disney's acquisition of such a large single-tenant building comes amidst a continuously hot office market in Greater Orlando where rental rates are steadily rising, and large blocks of space are increasingly scarce.
Overall vacancy in Orlando through the first quarter was 7.6 percent with an average asking base rent of $19.27, according to Cite Partners' latest market report.
But in the Southwest Orlando submarket dominated by the tourism corridor, those figures were 5.9 percent and $24.24. That submarket had the third lowest vacancy rate of 10 in the region, following Southeast Orlando and Winter Park, and the third highest average rental rate following Downtown Orlando and Winter Park.