Amazon to Extend Reach in Central Florida With New Fulfillment Center
Online Retailer Stakes Claim Along Fast-Growing Interstate 4 Corridor

By Clare Kennedy
CoStar
Published: Dec 27, 2019

Amazon has confirmed plans to open its fifth fulfillment center in Florida, a $100 million facility between Orlando and Daytona Beach that promises to create 500 full-time jobs by 2023.

Workers at the 1.4 million-square-foot center along the fast-growing Interstate 4 corridor in Deltona will pick, pack and ship large items such as sports equipment, patio furniture and bicycles, the retailer said in a statement. Construction is slated to be complete by November.

The property is owned by the DeMarsh family, according to Volusia County property records, who own a development company and the local movie theater.

Amazon selected Seefried Industrial Properties of Atlanta to develop the site, a company that has worked on several other fulfillment centers across the United States, including locations in North Carolina, Alabama and California.

Before Amazon made the announcement, the inland city of Deltona held a special commission meeting Thursday to identify Amazon as the tenant and to approve $2.5 million in tax rebates for the online retail giant. The panel voted 6-0, with Commissioner Loren King absent.

During the 17-minute meeting, Deltona Mayor Heidi Herzberg called Amazon "an amazing asset" for the city on the St. Johns River about 30 miles southwest of Daytona Beach and said officials have been working for years to lure Amazon to Volusia County.

"It's like our own little Christmas present to Deltona," Commissioner Robert McFall added.

The facility is planned for 85 acres at 2600 N. Normandy Blvd. in the new Portland Industrial Park at the I-4 and State Road 472 interchange. It is the first major project in the park and is expected to help attract other companies, according to the city. Until Thursday, officials referred to the deal only as "Project Normandy."

The Deltona project followed a pattern that has been seen elsewhere in the country, where Amazon has insisted upon both secrecy and the use of a code name. The company was the force behind "Project Bronco," a 650,000-square-foot facility in the Boise, Idaho, area, and was also most likely the mastermind of a now-dashed proposal in the Minneapolis suburbs called "Project Hotdish" - "hotdish" is the Minnesotan word for "casserole".

Elsewhere across the country, Amazon has started building multistory distribution centers, or vertical warehouses, as it tries to speed delivery times and adds more automation inside the facilities.

Deltona, a city of more than 90,000 residents, is part of a Daytona Beach industrial market where vacancies are below the long-term average, according to the latest report from CoStar market analysts.

"The booming population provides ample fuel to retail demand and personal consumption, ultimately creating consistent industrial demand," the report said. "The metro's strong tourism sector provides additional boost to personal consumption levels, and stems from its renowned beaches and many events, as well as being the corporate home of NASCAR."

About six years ago, Amazon began building its presence in Florida, the third most populous state, in an effort to compete with rivals such as Walmart. The company said it has created more than 13,500 full-time jobs in the Sunshine State. It has existing fulfillment centers in the Orlando, Miami, Tampa and Jacksonville markets.

"Since 2013, Amazon has invested more than $5 billion in Florida through local fulfillment centers and cloud infrastructure, research facilities, and compensation to thousands of employees in the state," Alicia Boler Davis, Amazon's vice president of global customer fulfillment, said in a statement.

Full-time workers at the Deltona center are expected to earn $15 per hour and earn medical, dental and vision benefits. They also will have access to a 401(k) with a 50% company match.

ckennedy1@costar.com @ClareLKennedy