Discussions are brewing for more commercial development adjacent a rising 1.4 million-square-foot Amazon warehouse project.
Atlanta-based developer Seefried Industrial Properties — which is developing the 85-acre Amazon site — is looking into potentially developing an adjacent 132 acres with building sizes between 130,000 to 1 million square feet. The project is called Portland Industrial Park. Pompano Beach-based RMA and Colliers International Central Florida continue to work to prepare the site for future use.
No deals have been signed, but users targeted include logistics and distribution companies. Seefried wasn’t available for comment. “It’s a snowball effect,” Lynn Dehlinger, senior economic development consultant
with RMA, said of how Amazon’s warehouse is attracting more industrial demand there. “We recognize that we need to take advantage of the market right now.”
Lit Deltona Logistics LLC bought the 132 acres for $9.4 million, or roughly $71,212 an acre, in December 2019, according to real estate research firm Reonomy.
More industrial users would be beneficial for the Deltona area’s economy. Seattle-based Amazon.com Inc.’s (Nasdaq: AMZN) deal alone will create 500 full-time jobs by 2022 and increase the city’s tax revenue by at least $624,791 annually. Amazon’s facility is expected to be completed by December.
Amazon’s presence makes the Deltona submarket more attractive — the city had long been a bedroom community for the region with little industrial activity. “It brings an additional viability to the submarket,” said David Perez, senior director with Cushman & Wakefield, who isn’t involved in the deal.
Future Deltona industrial deals add more fuel to the hot industrial real estate sector, which has been driven by the ecommerce boom led by Amazon. Retailers want distribution centers closer to customers so they can deliver products faster, which is why new users are lining up for industrial space.
In addition, Central Florida’s overall population and business growth have helped drive interest in warehouses,
distribution centers and manufacturing plants, creating an industrial “super corridor” between Daytona Beach and Tampa. More than 21 million people live within 250 miles of this particular Interstate 4 corridor, which makes the area a strong transportation corridor and great site for distribution centers. That’s creating demand for more and larger industrial development, Colliers International Central Florida reported.
Industrial stats aren’t tracked for the Deltona area, but the Central Florida industrial submarket has a 5.8% vacancy rate with average asking rates of $7.46 per square foot, according to Lee & Associates Central Florida.