A 130-acre property in Deltona, just east of Interstate 4, is set to become home to one of the region’s largest speculative industrial developments.

The I-4 Logistics Park, a partnership between San Antonio-based USAA Real Estate and Atlanta-based Seefried Industrial Properties, will bring 1.76 million square feet of Class A industrial space to the market.

Site-clearing work begins this week and anticipated delivery for the first building — the largest, which will measure nearly 1 million square feet — will be in January, Colliers International’s Lee Morris, who is handling leasing for the property, told Orlando Business Journal that A second phase of construction will include three other buildings planned for the park, which will range between 112,000 square feet and 500,000 square feet.

One of the strongest selling points for the space, which already has garnered strong interest, is its location, Morris told OBJ.

Adjacent Interstate 4, I-4 Logistics Park is about 10 miles northeast of where the tollroad beltway around Orlando eventually will connect — and which already has connectivity to State Road 417 — and is also a half-hour drive from connectivity to Interstate 95 to the northeast.

“For the users that have heavy port traffic, coming into either the Jacksonville port or Savannah, and want to serve Central Florida as well as South Florida — they can do that very easily because of this location,” Morris said.

The park’s larger buildings will feature 40-foot clear heights and on-site trailer queuing, among other amenities, and will have multitenant capability.

That industrial development would find demand in outlying areas of the Orlando market — and in this case, also the Daytona Beach market — is in line with insights previously shared by Jared Bonshire, an executive director with Cushman & Wakefield PLC. The landscape where industrial is located in the region is shifting, said Bonshire, who isn't involved with the project.

"Places a lot of people considered to be tertiary areas now are becoming more priority areas to locate inventory. One of the big growth areas is going to be on the north side of metro Orlando for industrial space, just because of the amount of already existing population."

The Volusia County industrial submarket, which includes the site of the future I-4 Logistics Park, had positive absorption of more than 1 million square feet in 2021 according to a fourth quarter report by NAI Realvest. Its average industrial lease rate is $8.81 per square foot, compared to metro Orlando's $10.07.

Meanwhile, the submarket has an average industrial vacancy rate of 10.2%, compared to the overall region's 5.1%.

By Steven Ryzewski – Staff Writer, Orlando Business Journal
Mar 30, 2022