An entity tied to an Orlando commercial bakery looks to build new commercial space near the airport.
Donut Holedings LLC — which shares an address with Orlando-based Bakery Express of Central Florida Inc. — seeks approvals for 195,000 square feet of warehouse buildings on 13.5 vacant acres northwest of Landstar Boulevard and Wetherbee Road, according to Orange County records. A company representative wasn't available for comment.
The project team so far includes Orlando-based Florida Engineering Group Inc. Donut Holedings purchased the land for $3.7 million, or roughly $274,074 an acre, in January 2017, according to Orange County records. Jetport Industrial Park Of Orlando Ltd. was the seller. The property's market value is $3.3 million.
The project may cost $12.7 million to build, based on industry standards.
It's not known how this warehouse will be used, but the race is on for more land to build space to meet e-commerce needs locally.
Online shopping has risen due to Covid-19 as more people order goods from home instead of venturing out to stores. In fact, for every $1 billion increase in e-commerce spending, there's a need for 1.25 million square feet of additional distribution space, according to a CBRE "U.S. Industrial & Logistics" second-quarter 2020 report.
"It's like a time machine and you come out 10 years later," David Murphy, senior vice president of CBRE Group Inc. (NYSE: CBRE), said of the growth in e-commerce. "That's what industrial looks like today. It's an accelerant to fast forward an impact that was already going to happen."
New construction is an important regional economic driver. It creates jobs, while also providing more space for companies involved in e-commerce, logistics, housing and other industries.
The airport/Lake Nona industrial submarket has a 13.2% vacancy rate compared with the Orlando-area average of 8.2%, Cushman & Wakefield PLC (NYSE: CWK) reported. That's likely due to the high amount of space under construction — 1.1 million square feet — which is tops among Central Florida submarkets. The large amount of space under construction shows demand for industrial product there.
In addition, the submarket has average asking warehouse/distribution rates of $5.89 per square foot, which is near the Orlando-area average of $5.97 per square foot.