For Immediate Release: May 14, 2007
Mike Byrum
Mainsail Development Group
When driving south on South Alafaya Trail toward Avalon Park, it is easy to find a number of undeveloped parcels with frontage on the road. Consequently, the perception is that there are a number of development opportunities along the Trail, and that these opportunities are the answer to the Alafaya Trail corridor’s commercial site shortage. The reality, however, may surprise you.
The vibrant 32828 zip code, bounded by S.R. 50 on its northern edge, the Econlockhatchee River to its east, and the winding South Alafaya Trail to its south and west, ranks among central Florida’s most prized demographic characteristics for retailers in the categories of education (as evidenced by advanced degrees), average household income, and children per household. The pent up demand for more commercial sites is a result of this powerful group of consumers being held captive by various locational factors along the southern end of South Alafaya Trail.
Much of the undeveloped land abutting the Trail south of Curry Ford Road and on the western edge of 32828 is municipally controlled. The Orange County Water Reclamation Facility, the Orange County Landfill Facility, the Stanton Energy Center, and the Orange County Jail are unavailable to developers for purchase and development. The remaining parcels are either environmentally sensitive or wetlands, and therefore unsuitable for development.
Along the eastern boundary of 32828, the Econlockhatchee River is very environmentally sensitive and serves to further contain the residents. Orange County officials have made it clear that breaching the River for eastward growth is not an option.
Furthermore, S.R. 50 is somewhat of a barrier to the north. Although the residents of 32828 can traverse their neighborhood via Avalon Park Boulevard, they typically choose Alafaya Trail because of more direct access to the main outlets of east Orlando, the East – West Expressway (408) and The Greenway (417) via Curry Ford Road.
Although there may appear to be more development opportunities forthcoming with the extension of Alafaya Trail to the Beachline, the coming 4.8 mile addition cuts almost entirely through the municipally owned land and therefore does not bring additional potential development sites to the market. The bottom line is that there is very little chance that additional commercial sites will ever be available on the South Alafaya Trail corridor.
At the moment, the commercial real estate market along the Alafaya Trail corridor is in near-equilibrium. Rental rates and vacancy levels have reached a temporary plateau, signaling that the market has reached an even keel. Because of this leveling off, the shortage of land on South Alafaya Trail available for development does not have much immediate impact on the market. However, when demand surges again due to the recovery of the housing market, the shortage of sites will likely result in even higher rental rates and lower vacancy rates.
Mike Byrum is a Senior Associate with Mainsail Development Group, LLC, and is based in the firm’s Orlando office at 301 East Pine Street, Suite 750, Orlando, FL 32801. He can be reached at 407.513.6340, extension 101, or at his leasing office in Alafaya Village, located at 2860 South Alafaya Trail, Suite 110, Orlando, FL 32828. For more information about Mainsail’s projects in east Orlando, please see www.alafayavillage.com.
