The hard construction cost will be about $8.6 million for the new phases of the developers' three 'smart' high-tech wired warehouse ventures that already are 100% leased at separate area locations.
In April, developers Geof Longstaff, George D. Livingston and Howard Schieferdecker will start the third 56,000-sf phase of Monroe CommerCenter South in Sanford, FL that will bring the venture to 172,180 sf.
Immediately adjacent to Monroe South is Monroe CommerCenter North where Livingston, founder and president of Realvest Partners Inc., will break ground in February on a separate but similar product that will add 90,000 sf to the existing 71,000 sf for a total 161,000 sf.
In June, the trio plans to break ground on the second 40,800-sf phase of Hanging Moss CommerCenter in east Orlando that will increase that facility to 94,200 sf. And by yearend, Small Bay Partners will begin construction on the 75,000-sf Goldenrod CommerCenter, also in east Orlando. By the end of 2004, the developers' portfolio will increase to 390,505 sf, space that also includes the Carter CommerCenter in suburban Winter Garden, FL.
"Demand for our small-bay commercenter concept is very strong," Longstaff tells GlobeSt.com. "Depending on site availability, there is plenty of demand in this region for (the development of) 150,000 to 250,000 sf of commercenter space a year, and we have the resources to develop it."
The sites Longstaff and his associates generally look for are in the three- to five-acre range. The average asking rent at their facilities is $6.50 to $7.60 per sf, which includes a 10% buildout.
Small Bay Partners can build their 'smart' warehouses for about $50 per sf. "The actual 'all-in' costs, including land, sitework, building, permits, soft costs, commissions and offsites is running pretty close to $50 per sf," Longstaff tells GlobeSt.com. "If you strip out commissions and lending soft costs, but retain permits, impact fees and architectural and engineering expenses, you may get the cost down to the $45-per-ft level."
But the developer adds that "many of the municipalities are considering rather drastic impact fee increases which has the potential to increase this per-sf cost over time."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
