Lakeland distribution center sells for $15.1 million

A 222,134-square-foot speculative warehouse and distribution center in Lakeland has sold for $15,105,112. Bobeck Real Estate purchased the property from Blue Steel Development before construction began on the project. The property, which is located at 5275 Drane Field Road, was more than 50% pre-leased before the project was completed.

The space will serve as a regional distribution center for the tenant, who has not been named.

Ryan Vaught, Robyn Hurrell, and Oliver Vaubois of Colliers International represented the seller in the sale transaction, and the landlord in the lease transaction. Jack Brown, SIOR, of Graham & Co. represented the tenant. The buyer was unrepresented.

“This property allows Bobeck to expand its portfolio in the region and take advantage of the strong industrial market we are seeing along the I-4 Corridor,” said Vaught, Executive Managing Director, Industrial Services for Colliers International. “The sale and subsequent lease demonstrate the continued demand for well-located, well-designed industrial assets in the Central Florida market.”

As of June, more than 2.5 million square feet of industrial space was under development in Polk County, with more than 700,000 square feet completed during the second quarter of the year. In July, Brennan Investment Group and Grandview Partners broke ground on the largest speculative industrial development to enter the Central Florida market – a 1,011,697-square-foot building at CenterState Logistics Park East.

“The big story in this area has been the number of industrial projects over 500,000 square feet,” said Hurrell, Managing Director, Industrial Services for Colliers International. “However, assets in the 50,000- to 200,000-square-foot range also continue to be strong.”

The undisclosed tenant leased 117,440 square feet of the more than 200,000-square-foot property to serve as a regional distribution center. Construction on the project was completed this month and the tenant will commence operations out of the space in December.

“Pre-leasing space before construction is completed isn’t a common practice,” said Vaught. “But in this case, it further goes to show the strength of the market and assets of this size. We were pleased to work with both parties to come to an agreement that works for both sides and look forward to securing tenants for the remaining space.”

About Colliers International Group Inc.

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