Amazon has struck another massive lease deal in Central Florida — this time for the region's biggest available industrial space.
The Seattle-based e-commerce giant will occupy the entirety of an existing 1.1 million-square-foot distribution center at 3015 Coast Line Drive, Orlando Business Journal has learned. The warehouse previously was the Winn-Dixie Distribution Center.
Meanwhile, new construction approvals are being sought for the site, according to documents filed with the St. Johns Water Management District. The site plan is called "DFL4 Seaboard Road." The name "DFL" is important as that's a code name used for Amazon projects, according to supply chain consultant MWPVL.com.
The new construction team includes Raleigh, North Carolina-based civil engineer Kimley-Horn & Associates Inc.; Orlando-based architecture firm Baker Barrios Architects Inc.; and Orlando-based Leading Edge Land Services Inc. as the surveyor. CBRE Group's David Murphy and Monica Wonus — along with Kevin Kelly, David Sours and Lucy Durbin — were handling leasing of the space for the building owner.
Greenwich, Connecticut-based real estate investment trust Starwood Property Trust Inc.'s Wd Coast Line Drive Fl Property LLC owns the property, according to Orange County records.
New construction is an important economic driver in Central Florida. It creates jobs and also provides more space for companies involved in e-commerce, logistics, housing and other industries.
Still a Hot Sector
Despite the novel coronavirus' business interruption, most construction continues in Central Florida including industrial real state, said local industry expert Bo Bradford, co-president of Lee & Associates Central Florida, who isn't involved in the deal or project.
Industrial is a hot real estate sector as companies — such as Seattle-based Amazon.com — try to deliver goods to customers faster.
"The big [companies] still are moving forward, taking advantage of what they think will be better pricing as the work dries up," Bradford told OBJ.
The Silver Star industrial submarket, which includes the future Amazon warehouse, had a 9.2% vacancy rate — largely due to the Winn-Dixie vacancy, Lee & Associates Central Florida reported. The Orlando-area's average vacancy is 5.8%. The submarket features 18 million square feet of space.
In addition, the submarket's average asking rate is $8.51 per square foot, which is higher than the Orlando-area average of $7.46 per square foot.