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ORLANDO-Metro Orlando's five-county, 133-million-sf industrial market will be getting a new addition in 2006 when Duke Realty Corp. breaks ground in January on Crossroads VII. The planned 233,700-sf industrial and distribution facility will be built on 10.4 acres at 301 Gillis Dr. near Interstate 4 in south Orlando.

A Duke representative says the company "always declines to disclose development costs." However, area construction sources familiar with comparable projects tell GlobeSt.com the building will most likely have an estimated hard construction cost of $45 per sf or a total $12 million. Duke anticipates the structure will be in service by July 1006.

Average asking rent will be in the $4.15 to $4.25 per-sf range. Despite having no preleasing activity, Duke officials expect the building to be fully leased by completion or during the second half of 2006.

"The south Orlando industrial market is underserved with institutional-quality buildings that can handle corporate America's distribution and logistics requirements," says Doug Imscher, senior vice president of Duke's Florida operations. "Crossroads VII will meet the next wave of demand and offer excellent access to I-4, the Florida Turnpike and the Bee Line Expressway, a primary east-west thoroughfare in south Orlando."

Kyle Armentrout, an industrial leasing representative at Duke, will market Crossroads VII. The building's completion will bring the size of Crossroads Business Park to three buildings totaling 573,000 sf. Imscher says Duke's Orlando industrial portfolio is 100% leased, "while the tight Southwest and Regency submarket, which totals more than 24 million sf, is 95% occupied."

In Florida, Duke controls more than 5.3 million sf of existing class A office and industrial real estate and 165 acres of undeveloped land that can accommodate another 3.5 million sf of future development, according to Imscher.

Instant Insights /

Duke Eyes January Start on Estimated $12M Spec Distribution Center

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