Construction of owner-occupied office and industrial properties, along with new retail product, will be in strong demand near a growing residential area 35 miles north of Downtown Orlando, predicts John Wanamaker, head of Coldwell Banker Commercial Property Showcase here.

"We're seeing a pattern similar to that of Seminole County 15 years ago," Wanamaker tells GlobeSt.com. "Growth in West Volusia has been primarily residential and new homeowners create a demand for services such as retail, office and industrial space."

The broker expects to see "a lot of new construction for retail as long as the housing market continues to grow. He also anticipates an increase of owner-occupant construction in the office and industrial markets.

"Demand for retail services is high, especially in the restaurant and entertainment sectors," Wanamaker says. Demand is also growing for small office facilities in the 2,500-sf to 5,000-sf range. "Current vacancy in West Volusia ranges from 5% to 7%--considered low in both commercial categories, mostly due to the lack of current supply," he says.

"Even if interest rates rise, demand for commercial space in West Volusia will be greater than the current supply," Wanamaker says. "Construction costs here in Volusia County are significantly lower than those in Orlando." Because of that environment, "owners and investors receive more for their dollar here," the broker says.