Ocala-based D.L. Fox Properties LP plans to start work this summer on the company's seventh building in Rand Yard Commerce Center, marking its buildout of the Sanford industrial park.
Managing Partner Daniel Fox told GrowthSpotter this building, the last of the company's projects in Rand Yard, will be the largest at 27,000 square feet, with a total construction cost estimated near $2.5 million.
"We hope to find one tenant," Fox said. "We can go two, but no more than that."
Fox said the company's other six buildings in the industrial park are fully leased with tenants such as Electric Power Systems, ice cream-maker Aurel, and Boss Laser. Three of those buildings were erected within the past year.
The latest project is being built on spec with no tenant lined up. Fox said the warehouse, which has a 24,875-square-foot paved parking lot, would be ideal for a light manufacturer or as a distribution center.
"We hope to start in the next couple of months," Fox said. "It will probably take six months to build it."
The building site is at the end of Trestle Point Road, next to two lots that were consolidated last year for Fox to build a 20,000-square-foot industrial building. The lots are adjacent to Seaboard Coastline Railroad and just east of North White Cedar Road.
Fox Properties' affiliate purchased nine parcels in Rand Yard in April 2015 for $1.75 million.
The Lake Mary/Sanford submarket had a 12.6 percent vacancy rate for industrial buildings through the first quarter of this year, according to Cushman & Wakefield's latest market report.
That is the second-highest industrial vacancy rate of the 14 submarkets surveyed by the company. The average vacancy rate across all submarkets combined was 5.1 percent.
Yet the Lake Mary/Sanford area was one of only six submarkets that showed year-to-date sales activity, encompassing 59,800 square feet. Only the Silver Star/Apopka submarket had higher activity in the first quarter at 84,330 square feet.
Lake Mary/Sanford had an industrial inventory of 8.81 million square feet through Q1, fifth highest of the 14 submarkets.