Developers expect to add much-needed industrial space to the region, along with an estimated 300 new jobs for area residents.

MIAMI—McCraney Property Company has been exerting its spec development force in the Florida market in this cycle, but there is some competition emerging fast—and seemingly plenty of room in the market to run. Foundry Commercial formed a joint venture with PGIM Real Estate to develop Princeton Oaks, a 510,000-square-foot class A industrial project in Orlando.

Princeton Oaks will sit on 60 acres west of Downtown Orlando near the intersection of John Young Parkway and Princeton Street. Developers expect to add much-needed industrial space to the region, along with an estimated 300 new jobs for area residents.

“The west and northwest submarkets of Orlando have, over the years, predominately catered to local delivery demand, or demand driven by local population growth versus our tourism sector,” Moses Salcido, managing director at Foundry Commercial, tells GlobeSt.com. “With most recent development occurring in areas south of our urban core, again driven by tourism and regional logistics, access to the greater metro population has virtually been ignored.”

The “last mile” aspect involves goods delivered direct-to-consumers, and is more reliant on urban warehousing for speed of delivery. This also mitigates time and cost of the supply chain. Having facilities near the urban core that are in close proximity to major roadways is a growing need that has been underserved in Orlando.

Princeton Oaks will be developed in the center of an established businesses community, which is also close to residential areas. The location of the asset provides a convenient solution to the “last mile” issues faced by local vendors and e-commerce companies, and will also provide access to major roadways that circumvent Interstate 4 during the Interstate 4 Ultimate Improvement Project.

“Light Industrial properties are a hot commodity in Central Florida, yet there has been little development within key demographics, like Millennials, which are one of the biggest driving forces behind the e-commerce industry,” says Salcido. “The market has primarily focused on 'first mile' aspects of distribution, and is now starting to focus on 'last mile' efforts to reach this consumer base. A steady shift from 'first mile' to 'last mile' further enhances a location like Princeton Oaks, whereby access to key housing/business nodes are reached with local roadway networks versus regional roadways—the Turnpike or Beach-Line.”

Princeton Oaks is the second industrial development from Foundry Commercial in Central Florida. The first, Crews Commerce Center, is a $50 million industrial park in southwest Orlando that includes 739,410 square feet of class A industrial space across six buildings. The first three buildings of Crews Commerce Center, which total 337,920 square feet, will be completed in May 2017. Groundbreaking on Princeton Oaks is slated for spring 2017, with an expected delivery date of December 2017. Beyond that, Foundry is betting on a $150 million spec industrial project in South Florida.

Instant Insights /

Foundry Inks JV for 'Last Mile' Light Industrial

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