HSA Commercial Wraps Fort Myers Spec Industrial Project
Highland Commerce Center of Fort Myers, a 482,000-square-foot speculative industrial project in Fort Myers, Fla., has been completed. HSA Commercial Real Estate, the developer, encountered a number of unusual circumstances that affected development, including a hurricane and the presence of a protected wildlife species.
HSA had tapped Premier Design + Build Group, a national firm, as the project’s general contractor. In September 2022, when Highland Commerce Center was still waiting for permits, Hurricane Ian made landfall in western Florida, ultimately causing an estimated $50 billion to $65 billion in property and infrastructure damages all together.
The hurricane caused massive damage across the region, and local officials shifted their attention to hurricane relief efforts, suspending permit issuance for several months. The developer and contractor also faced a variety of material shortages locally for a time.
Also, by the time work got underway, the property’s single tall tree had become home to nesting bald eagles. The Florida Fish and Wildlife Conservation Commission regulates activity near such active nests, meaning the construction crew needed to take extra precautions to protect the birds, including a buffer distance from the nest and adjusting work schedules to minimize noise and other disruptions, an effort led by Premier Senior Project Manager Jeramy Mahfet.
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The eagle’s nest was also monitored by specialists, and eventually the eagle pair produced three healthy eaglets.
Highland Commerce Center, which is on 33 acres, has 36-foot clear height, with 96 dock doors and four drive-in doors, as well as 181 parking spaces. The property has access to I-75, with Amazon, Coca-Cola and Wayfair occupying space in the neighborhood.
Southwest Florida industrial backs off record tightness
HSA’s spec project comes online at a time when the local industrial market has backed away from record low vacancy rates. Southwest Florida experienced a 220-basis point increase over the last year, reaching 2.8 percent, according to Cushman & Wakefield data.
Although there was only a bare 10-basis point increase in industrial vacancy quarter-over-quarter in SW Florida in the first quarter of 2024, rates have been gradually rising since a historic trough of 0.6 percent one year ago.
Capital markets tumult means that Highland Commercial Center will be among the last industrial deliveries in SW Florida for some time, with development almost coming to a halt. Only about 260,000 square feet remains under construction in Lee County, Cushman & Wakefield reports.
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