Global real estate firm Taurus Investment Holdings is planning more than 560,000 square feet of new warehouse space for the second phase of industrial development in its Beltway Commerce Center, northeast of Orlando International Airport.
Taurus' Maitland office filed a Specific Parcel Master Plan in mid-November with the city of Orlando for the next phase of Beltway Commerce Center, located east of the Lee Vista Boulevard and the Central Florida Greeneway (S.R. 417) intersection.
The Phase 2 plan includes two new industrial/distribution buildings of 240,000 and 324,000 square feet, to occupy 41.79 acres of a 64.93-acre parcel.
The Beltway Commerce Center has a Planned Development that spans more than 490 acres around the intersection, the majority owned by Taurus affiliates, with only 67.11 acres of the mass developed thus far by Prologis with four warehouses totaling more than 784,600 square feet of conditioned area.
While Taurus filed the plans and owns the land, it name-dropped global equity group Colony Northstar on two pages in the submittal, indicating a partnership or planned acquisition of the buildings after construction.
"We don't know at this time if its going to be (Colony) or someone else," Jeff McFadden, managing director in Florida for Taurus, told GrowthSpotter. "Taurus is going to develop it no matter what."
Colony has been an active industrial buyer in Orlando over the past year, acquiring three buildings totaling 479,000 square feet in October 2016 in the Lee Vista Commercial Park near Taurus' Beltway Commerce Center, a four-building portfolio in the Crownpointe Commerce Park near the tourism corridor with 669,247 square feet in April 2016, and a four-building portfolio totaling more than 946,000 square feet this past February in the Beachline Distribution Center and Crossroads Business Park.
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Taurus' new SPMP submittal follows the review of two Growth Management Plan amendments and a related PD Master Plan change request filed earlier this fall.
Those GMP and PD change requests would also pave the way for single- and multifamily development on parts of the 281 gross acres north of Lee Vista Boulevard, for which Taurus has a buyer under contract.
"We have a lot developer (under contract for all 281 acres) who is working with a homebuilder," McFadden said. "We won't do the horizontal development, we'll just sell it to them. The buy has not gone hard on a deposit. I anticipate we'll have the (GMP and PD changes) done by June of next year."
The Central Florida industrial market continued to grow through the third quarter of this year with consistent absorption of new space and larger requirements from a growing number of tenants, according to Colliers International's latest market report.
The region's vacancy rate stood at 5.3 percent at the end of Q3, down 0.3 percent from the quarter prior, with more than 1.84 million square feet under construction and an asking rent average of $5.79 per square foot, up from $5.40 a year ago.
The Southeast Orange submarket has had a net absorption of more than 1.585 million square feet so far this year, the most among six area submarkets tracked by Colliers. It also has the second most new industrial space currently under construction after Southwest Orange, with 453,030 square feet in the pipeline that doesn't include Taurus' next phase of Beltway Commerce Center.
Institutional investor demand for Class A industrial product was at its highest in Q3 of this year, with capitalization rates between 5.5 and 6 percent for industrial assets in superior locations, per Colliers.