Denver-based DCT Industrial Trust opened its fourth industrial warehouse building this week at Airport Distribution Center North, may start construction on the fifth and sixth within the next year, and is considering land purchase for a seventh, a lead executive with the company told GrowthSpotter.
Located on the southeast quadrant of Conway and Judge roads near Orlando International Airport, the ADC North development has fully leased its first three buildings totaling more than 300,000 square feet, mostly to light distribution and third party logistics firms.
Its fourth, Building "D," just received its Certificate of Occupancy this week for 95,036 square feet, and has no committed tenants yet, said leasing director Eric Penaranda, during NAIOP Central Florida's Developer's Showcase event on Thursday night.
Building D features 44 exterior docks with two drive-in doors, a clear height of 26 feet, 120-foot truck court, 60-foot concrete apron and 50-foot by 50-foot speed bays.
The future fifth and sixth, Buildings "E" and "F," are currently projected at 100,748 square feet and 102,405 square feet. Construction on those could begin in the next 12 months, pending market demand and lease up of the fourth, Penaranda said. Building "E" could be a build-to-suit for a tenant's specific needs.
DCT Industrial is also in discussions to purchase 12 acres directly north of ADC North's second phase for what would be a seventh building, currently projected to be its biggest yet at 168,300 square feet.
That land acquisition could close as soon as February 2017, but the expansion plan and negotiations are fluid, Penaranda said.
The target property is part of a 16.98-acre parcel owned by the Cusson and Owens family trusts, which also sold DCT Industrial's affiliate the land for its first two phases of ADC North in 2006 and 2015.
DCT Industrial is a publicly-traded, real estate investment trust (REIT) that owns 24 industrial warehouse buildings in Greater Orlando, with more than 2.7 million square feet overall, most of which are concentrated near Orlando International Airport.
Cite Partners published a report Aug. 1 on the Central Florida industrial market for Q2 2016, highlighting that total vacancy fell for a fourth straight quarter to 7.0 percent. Southeast Orange County had a 9.0 percent vacancy rate, the highest among regions within the county.
The Southeast Orange industrial market currently has all of Greater Orlando's new construction: nine buildings totaling 1.65 million square feet, with seven of those offering less than 135,000 square feet, and half the total space now being built already pre-leased, per the report.