It's the first second-quarter project going up at the 33rd Street site. The first two-story, 12,000-sf building is expected to ready for occupancy in September.

Average asking rents in the 33rd Street Industrial submarket are $8.59 per sf for research and development/flex space and $6.16 per sf for wholesale/industrial, according to the newest market analysis from Grubb & Ellis Co.

Richard DeLater, who has directed the development and leasing of 20 warehouse and commercial service center properties in the past 15 years, is confident his newest product will be coming on line at the right time.

"Our pricing will be competitive in the market and our timing should be good, based on a pickup in activity expected in the second half of this year," DeLater tells GlobeSt.com.

Although he has no pre-construction leases booked, the developer is building in a 5.92 million-sf submarket with strong demand and a first-quarter vacancy rate of 3.5%, the lowest of all 12 markets, according to Grubb & Ellis.

"We have targeted the project to attract tenants which need a central location and immediate access to Orlando's major transportation network, especially I-4," DeLater says. "Service and delivery/supply businesses should find our central location beneficial to controlling the transportation costs associated with servicing the Orlando market."

The first phase comprises three buildings, two offering grade level flex and one offering office, fronting along Interstate 4. Phases Two and Three will follow, based on market demand and will provide up to 96,000 sf of dock-high warehouse and additional flex and office for lease.

"The future Phase Three can accommodate build-to-suit/lease opportunities on a limited basis," DeLater says.

Consultants on the project are Farmer Baker Barrios Architects and Pertree Constructors Inc. of Altamonte Springs. The site is on 33rd Street, Orlando, between U.S. 441 and John Young Parkway.