An Ohio-based commercial investment group is preparing to break ground on the second phase of an industrial center in southeast Orlando, with flex-office and a large distribution center planned in a booming submarket near the airport.
Located at 8119 S. Orange Ave., just south of E. Sand Lake Road, the 5.2-acre site previously had development plans approved as part of the larger Parkline Industrial Center.
The first phase of that was developed in 1999 with an 80,000-square-foot multitenant warehouse directly south of the Phase 2 site.
Bob Mclaughlin, manager of MAS Investment Group, leads a group of property investors whose affiliate owns the properties. The group has also developed two multifamily projects together in Pasco and Osceola counties.
With construction permits in hand as of this week, Phase 2 calls for a 51,200-square-foot warehouse and a 20,475-square-foot building that can serve as flex space for office or retail tenants with large storage needs.
"The larger building will have a clear height of 26 feet, whereas the flex-space building is only 16 feet clear height," said Richard McCree, Sr., project manager and chairman with McCree General Contractors & Architects, which holds both roles on the project. "There will be dock-high entry on one side designed for warehouse or distribution center activity. We're viewing this as ideal for e-commerce."
Construction is anticipated to start in early August and run through March 2019, McCree said. Michael Hedrich of NAI Realvest is leasing agent for both of the new buildings.
The property falls within the SE Orange County submarket, the largest of seven (35.9 million square feet of inventory) tracked by JLL Orlando in its quarterly market reports.
The SE Orange submarket ranked sixth of seven in total vacancy (6.6 percent) at the end of the second quarter, but that's a bit of an anomaly after having the second lowest vacancy in Q1.
The temporary shift came from two new speculative buildings (399,000 and 134,000 SF) at Air Commerce Park being delivered but not fully leased, and Amazon's new fulfillment center (856,000 SF) being completed but not yet occupied, per JLL's Q2 report.