Tavistock Development Company and South Florida-based manufacturing company, List Industries Inc., are joining a growing list of developers looking to invest in what experts believe to be a momentous era for the industrial commercial real estate sector.
In Lake Nona, Tavistock is readying up to build a shovel-ready, 90,000-square-foot warehouse project located near Drive Shack Orlando, off of Lake Nona Boulevard and north of State Road 417.
Tavistock spokeswoman Karlee Kunkle said the company plans to develop the industrial project, and have not yet signed on a tenant. The company is currently seeking entitlements to plat the property for warehouse development use from the City of Orlando.
Meanwhile in Apopka, List Industries is seeking to demolish its aging manufacturing plant and maintenance facility at 2983 W Orange Ave., built in the 1940′s and 1960′s, to make way for a new 85,680-square-foot distribution center.
The company manufactures lockers, cabinets, shelving and gates. Its corporate headquarters is located in Deerfield Beach. The company has three manufacturing plants in Florida, including the Apopka site, as well as six regional distribution centers and seven regional sales offices located throughout the United States.
Conceptual plans recently submitted in the St. Johns River Water Management District show List Industries’ new distribution center will include a 2,945-square-foot office on a second floor mezzanine space and loading docks and ramps on both sides of the warehouse.
Civil engineer Rodney Gadd with Gadd & Associates confirmed the company is looking to redevelop its Apopka location, for single-use operation by the company. List Industries’ manager Herbert List Jr. was not available for comment.
Compared to office, multifamily and retail, industrial real estate hasn’t been hit as hard by the coronavirus pandemic thanks to a greater dependency on e-commerce and the delivery of products.
According to a third quarter industrial report by JLL, the Greater Orlando industrial submarket saw one of its strongest quarters in recent history with absorption rates and rents increasing, and vacancy rates decreasing.
More than 1.7 million square feet of deliveries were added to inventory this quarter, and vacancy ticked down 20 basis points, according to the report. Direct asking rents also resumed growth, climbing 2.3 percent year-over-year to $6.48 per square foot.
In addition, the report states that leasing activity is anticipated to pass a five-year high, and was propelled by e-commerce users with large footprints expanding in the market.
Earlier this summer, JLL release a report that estimates e-commerce sales could hit $1.5 trillion by 2025, which would increase the demand for industrial real estate to an additional 1 billion square feet. In a prepared statement, Craig Meyer, president at JLL Americas Industrial, said he believes e-commerce still has a “long runway for growth.”
Notable companies that recently set up shop in Orlando include both Goya and Coca-Cola.
According to JLL, the companies combined contributed 712,500 square feet to positive absorption at the newly constructed Mid Florida Logistics park. Amazon also plans to take control of 561,750 square feet at Air Commerce Park and will occupy 4401 Seaboard by the end of this year.
Hanover and general contractor Arco Murrayare proposing to build a 420,000-square-foot cross-dock facility across the street from the new $125 million Kroger-Ocado distribution center. The warehouse would rise on 9.75 acres in the Christopher C. Ford Commerce Park, near the U.S. 27 intersection at State Road 19.
The company also recently began building out its Trinity Industrial Park in Kissimmee, which could hold approximately 230,000 square feet of flex warehouse space once complete.