Should I Lease, Hold, Refinance, or Sell My Commercial Property?

One of the most common conversations I have with Orlando property owners starts the same way.

“I think I might want to sell. Or maybe not. I’m not sure what the right move is.”

That uncertainty is completely understandable and it’s more nuanced than most owners realize. The decision isn’t simply whether to sell or hold. Most owners have four viable paths available at any given time: lease, hold, refinance, or sell. Each can be the right answer. The challenge is knowing which one fits your situation right now, in this market, given your specific goals.

Why This Decision Is Harder Than It Looks

Orlando’s commercial real estate market is not behaving uniformly. Retail vacancy sits at roughly 3.7% with average asking rents near $30 per square foot, which are conditions that favor landlords and support leasing strategies. Industrial rents reached a historic high of $11.45 per square foot in Q4 2025, up 5.5% year over year.

The right strategy for a retail strip center owner in Apopka is not the same as the right strategy for an office building owner in downtown Orlando. Context matters enormously.

Here is how to think through each option.

Option 1: Lease

If your property has vacancy, leasing it before making any other move can significantly change your outcome.

Occupied, income-producing properties attract a wider buyer pool and support stronger financing terms. A vacant property is often perceived as a liability, even when the underlying real estate is solid. Stabilizing occupancy first can shift both the perception and the price.

According to TenantBase, retail and storefront tenants accounted for nearly 60% of all tenant search activity in Orlando in Q4 2025, which suggests active leasing demand exists if the product and terms are right.

Questions to ask before pursuing leasing:

• Is there tenant demand for this property type in this submarket?
• What lease term and structure would make the property more attractive to a future buyer?
• How long would lease-up realistically take and what does that cost you in carrying time?

Leasing is not always about generating income. Sometimes it is about building value in preparation for a stronger exit.

Option 2: Hold

Sometimes doing nothing is the right decision. But “holding” should be an active choice not a default.

Holding makes sense when rents are rising, when nearby development is increasing the long-term value of your location, or when your existing debt is at terms that would be difficult to replicate today.

That last point matters significantly right now. After peaking above 8% in 2023 and 2024, the prime rate has settled at 6.75% as of late 2025. Owners who locked in debt at 3% to 4% a decade ago are sitting on a financing advantage that has real value. Selling and then redeploying capital at today’s rates is not always the obvious win it might appear to be.

The question is not “should I eventually sell?” The question is “does selling now serve my goals better than waiting?”

Questions to ask if you are considering holding:

• Is the property performing at or above market for its submarket and asset type?
• Has the nearby development environment improved, stabilized, or declined?
• What does my existing debt look like, and what happens when it matures?

Option 3: Refinance

Refinancing is one of the most underused tools in a property owner’s strategy. Many owners only think about it when their loan is maturing. That is usually too late.

Strategic refinancing is done before a maturity event and can allow owners to reduce monthly payments, access equity for improvements or acquisitions, and extend their runway without giving up ownership.

The CBRE Lending Momentum Index rose 112% year over year in Q3 2025, its highest level since 2018, reflecting increased activity as rate uncertainty has calmed. That environment has reopened refinancing conversations that were stalled during the peak rate period.

It is also worth understanding the broader pressure in the market: over $1.5 trillion in commercial real estate loans are set to mature by the end of 2026. Owners with maturing debt who wait too long may find themselves with fewer options and less leverage than those who plan ahead. Florida commercial mortgage rates currently start as low as 5.07%, which (while higher than the historic lows of 2020 and 2021) is meaningfully better than where rates were 12 to 18 months ago.

Questions to ask about refinancing:

• When does my current loan mature, and what are the terms?
• Has the property’s value increased enough to support a cash-out refinance?
• Could accessing equity today allow me to improve the property or acquire additional assets?

Option 4: Sell

Selling may be the right answer but the decision should be driven by your goals, not by market headlines.

Selling makes sense when capital is needed elsewhere, when ownership objectives have changed, when management has become burdensome, or when the market is presenting a window that may not stay open. In some cases, it simply makes sense to redeploy equity into something better aligned with where you are in life.

What I see most often is that owners who rush to sell without fully understanding their options or who wait too long because they are not tracking market conditions thereby leaving value on the table in both directions.

Preparation matters. Understanding what buyers are looking for, what your property’s current market value is, and what realistic exit terms look like gives you options. Without that information, you are making a major financial decision without a full picture.

The Question Most Owners Have Not Recently Asked

When did you last receive an updated opinion of value on your property?

Many owners have not had a serious valuation conversation in three, five, or even ten years. A lot has changed in the Orlando market over that period. Rents have moved. Cap rates have shifted. Submarkets have transformed. The 429 corridor looks nothing like it did a decade ago. Lake Nona’s growth has repositioned the southeast Orlando market entirely. Properties near major employers such as the VA Medical Center, Nemours, UCF Health Sciences, Lockheed Martin carry different occupancy profiles and buyer demand than they once did.

Knowing what your property is worth today is not a commitment to sell. It is the foundation of every other strategic decision.

There Is No Universal Answer

One owner may benefit from selling immediately. Another may benefit from leasing a vacancy and revisiting the decision in 18 months. Another may find that refinancing unlocks capital without requiring a sale at all.

The right decision comes from understanding your goals, your property’s current position, and what the market is actually doing not from reacting to headlines or following what someone else did with a different property in a different situation.

If you own commercial real estate in Central Florida and have not recently evaluated your options, that conversation is worth having. Not to pressure a decision, but to make sure whatever decision you make is an informed one.

Amy Calandrino is a commercial real estate advisor based in Orlando, Florida, specializing in owner representation, owner-users, investors, and developers. She can be reached at amy.calandrino@cushwake.com or through CREOrlando.com.