No matter where you drive along the newly developed roads of Brandon, you're certain to see buildings under construction Ð lots of buildings. New monuments of office, industrial, retail and multifamily residential developments are dotting the once-open landscape of eastern Hillsborough County. The few-remaining fields of cattle are mere reminders of a time not long ago when farmers owned most of the land, property whose use is being transformed in what local developer Eric Eicher calls "the urbanization of Florida." Development in Brandon is happening so quickly that, in some places, the cattle can be seen nibbling at grass under the fences around newly opened commercial centers.
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Brian Merryman, manager of Quest Diagnostics Inc.'s operation in Brandon, is expanding the company's national customer service center from 90 to 285 employees.
Photo:Tom Berndt
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"This is still the fastest-growing area in Hillsborough County and the Tampa Bay area," says Bruce Drennan, president of the Greater Brandon Chamber of Commerce. "The intersection of I-4 and I-75 is one of the last in the interstate system that is largely undeveloped."
But a "Who's Who" of bay area developers area have taken note. They're investing mega-dollars in real estate and are building infrastructure to accommodate new buildings for the major companies that want proximity to the growing workforce that Brandon is accumulating.
"For years we've been talking about growth coming to Brandon," says developer Glenn Cross, a partner at Tampa-based Shimberg-Cross and board member of the Brandon Chamber. "It's culminating now."
With a population of roughly 175,000, this unincorporated suburb of east Tampa would be Florida's 10th largest city if it were to become a municipality. And the census count is guaranteed to grow as new units of multifamily residential come out of the ground. "Five thousand multifamily units are under construction," says Eicher, executive vice president of R.E. Woolley Florida Inc. "And that's just what companies [coming into the area] say they need, labor."
Brandon's growing workforce has attracted companies like Citicorp, Chase Manhattan, Ford Motor Credit Co., Uniroyal Technology Corp. and Frito-Lay. And "GTE has a million square feet out here," Eicher says.
Quest Diagnostics Inc.'s (NYSE:DGX) operations aren't quite that size, but the Teterboro, N.J.-based health care firm recently expanded its 10,000-square-foot customer support services center at Interstate Commerce Center to 33,000 square feet.
"Our initial venture started here in September 1998 with 90 employees," says Brian Merryman, the firm's manager. "We handle patient and physician customer service calls for our laboratories across the country."
With this expansion, the staff is growing to 285. And Merryman says that recruiting staff to Brandon has worked well. "This is a good location to pull staff from the area," he says. "They commute from North Tampa, Brandon, South Tampa, even Lutz. One employee travels from Spring Hill [in Hernando County] for our 9-to-6 shift. We have no trouble finding employees."
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At Highland Oaks, Duke-Weeks Realty Corp. is constructing a $113-million, three-building campus for Chase Manhattan Bank's Chase Treasury Solutions operation.
Photo:D.J Wilson
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Merryman takes pride in the center's 16-percent turnover rate. "Our human resources director has surveyed other local centers and their turnover rate is 40 percent," he says. "We give our employees a good work environment."
Along with a "better starting rate of wages and excellent benefits," Merryman says, "we wanted an open environment in the work place. You don't get the sense of pressure. It's not closed in. Our employees have freedom of movement."
The center features an interior that is a departure from the typical office environment. Bright colors accentuate the cityscape that Tampa-based Alfonso Architects designed for the center's walls. The theme even carries into the carpeting and floor tiles. "We receive nothing but good feedback on our center," says Merryman.
Quest, with 1999 annual revenues of $3.2 billion, recently acquired Smithkline-Beecham laboratories. The firm has additional customer support centers in other cities, but selected the Tampa Bay area as its primary service center due to a survey of the top 10 cities for supporting backroom operations. "The survey is based on 17 quality-of-life factors," Merryman says. "San Antonio came in first and Tampa was second. We don't have a lab in San Antonio but we have a large lab in Tampa."
Chase plans its move
The due diligence done by Chase Manhattan Bank also ranked the Tampa Bay area high on the list for relocating its Chase Treasury Solutions operations. The New York City-based firm is preparing to occupy its $113-million corporate campus with three buildings totaling 450,000 square feet under development by Duke-Weeks Realty Corp. at Highland Oaks in Brandon.
"We did a year of demographic work in the [site] selection process," says John Zutter, managing director of Chase Treasury Solutions. "We looked at global infrastructure, size of the workforce and the reach we could draw from, kind of talent and educational standard, other employers in the area competing for those people. In large measure, that confirmed our choice of the Highland Oaks location."
Zutter is quick to add, "there's no question that Duke-Weeks made a compelling case as a quality developer. We knew their record. They could build the image in a campus-style setting we wanted. The location is superior and the environment attractive for the ambiance we want to establish. This is a leap forward into the New Economy."
Although Chase plans to initially employ 1,400 people, "the campus has capacity for up to 2,000," Zutter says. "We have [capacity for] growth there."
The functions that will occur at the Highland Oaks campus include security transactions and cash management. "We're the largest mover of money in the world," says Zutter. "Demand deposit and investment management activities will be there. The third major area is our trade finance business. We're poised for Internet and Ablenet development of these businesses and we'll be investing very heavily on the Internet and the New Economy. Highland Oaks is one of the major areas it will take place."
Since these operations are relocating from New York, "we're doing something that Chase has never done before," Zutter says. "We're offering every employee their job at the new location with financial support to get there. We've been surprised that the number of key managers who have agreed to go is high."
Nonetheless, Zutter anticipates a lot of local hires. "If we do [transfer] 20 percent, we'll be doing very well," he says. "We have a recruiting office in Highland Oaks right now."
At least half of those 1,400 jobs are technology oriented. "Chase was selected as qualifying for the QTI and investment tax credit program because of the large number of tech-based jobs," says Zutter. "We'll need people with a technical background with language training and capabilities, PC literacy, facility with the Internet, systems planners and programmers."
In keeping with the firm's Fountain Square operations in Westshore, Chase is emphasizing employee amenities at its Highland Oaks operations. "We have to be competitive in the work place," Zutter says. "We'll have a high-quality cafeteria and an area outside with raised cupolas so staff can have lunch or meetings there. Our backup child care facility is an amenity that sets us apart. We'll have enclosed parking for 1,800 cars. And we're doing a lot of new plantings at the site. We've received kudos from the county on the preservation approach that we've taken. We haven't been cutting down trees. We'll recourse our own wastewater on the site for watering plants, which means we won't be drawing water off the town."
"The location [at Highland Oaks] is
superior and the environment attractive
for the ambiance we want to establish."
- John Zutter, managing director,
Chase Treasury Solutions
High-bright light
While Chase prepares for a January 2001 move into its new buildings, another high-tech employer in Brandon continues along its high-growth track. Uniroyal Technology Corp. (Nasdaq:UTCI) is investing $25 million in its Sabal Park high-brightness light-emitting diode facility to add new equipment and a research-and-development unit. Robert Soran, the tech firm's president, has recruited Jeff Nelson, a former postdoctoral researcher at Sandia National Laboratories in Albuquerque, to head the department.
"He's our chief technical officer," Soran says. "We'll have eight to 10 Ph.D.s on our R&D team."
Although Uniroyal's joint venture partner, Emcore, is also involved in R&D, "we've decided to create a world-class research facility here," says Soran. "It's good for business. It allows us to rapidly have a dedicated team of people to explode this technology quickly. If we stand still, we'll get run over by the train."
The manufacturing sector at the plant isn't standing still either. "We've started three shifts and will go to 7/24 [seven days a week, 24 hours a day] in the most demanding parts of the operation in September," Soran says. "We were targeted for 60 employees and are at 100. The board authorized another capital expansion in equipment and reactors and we're in the process of installing that now. We've added capacity ahead of schedule. Demand for this product continues to explode."
A new corporate neighbor to Uniroyal Technology is Ford Motor Credit Co., which not long ago opened a 600-employee regional customer service center in Sabal Pavilion, the 120,500-square-foot Class A office building originally intended for Intermedia Communications. The telecommunications company's rapid growth led it to bypass that build-to-suit for a much larger campus developed by Highwoods Properties in New Tampa.
"We took that building back as a spec," says Laurie Micciche, marketing representative at Highwoods Properties. "It was 95 percent done and we were fortunate to get the Ford deal and get them moved in without much of a bump."
Executives at Dearborn, Mich.-based Ford Motor Credit Co. were happy with the deal, too. "Our selection of Sabal Pavilion was a question of what was available in the market at the time," says John Strang, the firm's infrastructure team manager. "Our broad-based criteria for Tampa in general were business and lease costs, tax structure of the state and county, labor costs, availability and quality of labor in the market, quality of life for employees and air transportation to other key locations. That caused Tampa to bubble up near the top."
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Canariis Corp., which manufactures packaged water pumping systems, more than doubled its old space when it moved into this 43,000-square-foot facility at Oak Creek Park.
Photo:D.J. Wilson
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This operation, one of seven regional centers throughout the United States, handles account transactions for customers in Florida, parts of Alabama and Georgia, New York, New Jersey and upper Pennsylvania. "One of the other keys to our Tampa selection was that we knew we would need bilingual Hispanic speakers," Strang says. "This eliminated a lot of other potential sites in the Southeast outside of Florida."
Staffing the new 600-employee center has gone well. "We've been able to attract high-quality applicants," says Strang, "and our attrition rates are good or better than expected."
Other build-to-suits in Brandon include the $14.3-million, 120,543-square-foot office building developed for Household Finance Corp. by Opus South Corp. at Regency Corporate Park and a 115,000-square-foot facility for Circuit City developed by ProLogis in Sabal Park.
Manufacturing
diversity
While call centers and high-tech firms find advantages in setting up operations in Brandon, the industrial and manufacturing sector is also thriving along the I-75 corridor. Key West Lamp Co. started producing lamps and tables in East Tampa in 1993 and currently operates in a 120,000-square-foot facility in Tampa Distribution Center. The 140-employee firm, with annual revenues of $12 million, is ready to break ground on a $6-million, 188,000-square-foot factory in the Tampa Bay Park of Commerce in Brandon.
"We have a provision to expand to 250,000 square feet," says Jeff Marple, the firm's vice president of finance and operations. "The availability of real estate and ability to expand were key issues. Brandon has a good business climate. Accessibility and proximity to rail, suppliers and multiple options for our employees to get quick-and-easy lunches were also important. We also like the synergy and proximity to our largest customer, Rooms To Go. We'll add 25 people when we move into our new building."
Another build-to-suit in the Tampa Bay Park of Commerce was recently completed for Infra-Metals Co., a division of Preussag North America Inc. The 35-employee firm moved into its new 120,000-square-foot distribution warehouse to provide carbon steel products to structural fabricators and equipment manufacturers throughout Florida.
"We were in a 75,000-square-foot building that wasn't suited to our needs," says John Walmsley, the firm's branch manager. "This one has been built to our specifications."
A key to the firm's location is "the workforce availability of experienced people in this industry," Walmsley says. "And it's a nice area. It's easily accessible to all parts of the state from here. We're five miles in each direction of all the major interstates. Another incentive for this location is the rail spur directly to our building. That's very important in this industry."
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Household Finance Corp. occupies this $14.3-million, 120,543-square-foot office built by Opus South Corp. at Regency Corporate Park.
Photo:D.J. Wilson
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It's a Riverview location at the southern edge of Brandon that appealed to Gary St. John, president at Canariis Corp., which recently occupied its new 43,000-square-foot manufacturing facility at Oak Creek Park. The 36-employee firm manufactures packaged pumping systems for domestic water, irrigation, municipal, fire protection and HVAC applications.
Canariis previously occupied a 16,000-square-foot facility in Sabal Park and needed to grow. "Brandon had the best deal I could make on the land," says St. John. "The majority of our employees live very close to this area. When I bought this piece of property [at Oak Creek] I was concerned about this location. Nothing was here. I wouldn't have bought it if Eric Eicher [who spent many years developing real estate in Sabal Park] had not been involved. But they set up deed restrictions that are equal to the best park there is. Three or four buildings are under construction now. It's all high-end stuff, so this has turned out well."
The state-of-the-art facility has been good for business, too.
"Since we've moved into this facility, we've been more than overwhelmed with new business," St. John says. "One customer had been planning a significant expansion, putting 20 different centers in around the United States and was looking for somebody to quickly build packaged pumping systems for their air conditioned cooling. Because of our new facility, we got the order. It's the biggest order in our history. They wouldn't have considered us if we hadn't moved into this facility."
A growing neighborhood
Premier Beverage is operating in its new 222,000-square-foot facility at Oak Creek Park. "That was the largest industrial deal in Hillsborough County last year," Eicher says.
The sense of isolation for Canariis is diminishing, as three buildings are currently under construction at Oak Creek. Crescent Resources is developing two speculative buildings of 131,685 and 126,000 square feet. A 112,000-square-foot building is also planned as a build-to-suit for an as-yet unnamed firm.
"[Brandon] is a nice area. It's easily
accessible to all parts of the
state from here. We're five miles
in each direction of all
the major interstates."
- John Walmsley, branch manager,
Infra-Metals Co.
"We have $12 million of site work underway at Oak Creek," says Eicher. "This is the largest DRI for entitlements in Hillsborough County."
But R.E. Woolley Florida Inc. and Crescent Resources are not alone in developing commercial real estate along Brandon's I-75 corridor. "Duke-Weeks, Liberty Property, EastGroup, ProLogis, Opus South Corp., you name it, they're all here and all building," Eicher says. "Developers are paying for roads and infrastructure. Everybody and their brothers are building in Brandon."
Eicher's interest in Oak Creek is a natural since "the bigger projects started in the Ô80s are finished or in the last 20 percent of development," he says. "Sabal Park is down to its last 15 acres. Pinebrooke was 200 acres and is down to its last 22 acres. The reality is, Brandon and the South County area has the largest available tracts for development. We're in the path of growth."
As a result, land prices are escalating. "Realtors have convinced the owners of large tracts of land that they need to up their prices," says Glenn Cross at Shimberg-Cross. "In the last five years, land prices have gone from $5,000 an acre to $25,000 an acre."
A similar trend is occurring with industrial land along the I-75 corridor as well. "It's $2.50 a foot and up, and escalating," Cross says. "We'll see the $3 to $4 range in industrial land in the not-too-distant future."
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Work is nearing completion on a new 50,000-square-foot distribution center being built at Pinebrooke for Frito-Lay.
Photo:D.J. Wilson
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Some speculation
That hasn't stopped Realvest Partners Inc. from opening Interchange Center, a new 70-acre business park in Brandon. The firm is starting construction on a 323,900-square-foot Class A flex building. "It's 100-percent spec," says Steve Swann at Realvest. "The south I-75 corridor is coming into its own with the opening of the extension of Falkenburg Road. We're very excited about our position in the current market place."
Orlando-based CNL Corporate Properties Inc. has completed its first spec building and is planning to start construction on two more spec office buildings in Legacy Park, a new 70-acre business park. "Our buildings are designed to accommodate companies looking for high-density uses, such as call centers," says Gary Bauler with CB Richard Ellis, who is marketing the property. "Brandon is known for its labor base. Everyone can commute on the I-75 corridor with three or four lanes in each direction. It's fairly easy driving and there's no rush hour. It moves pretty quickly."
Along with its investment in Oak Creek Park, Crescent Resources is building a 120,000-square-foot Class A office building and 500 apartment units in Crosstown Center. "It's so close to everything," says Joe Taggart at Crescent Resources Inc. "Downtown [Tampa] is only 10 minutes away. We have great access to I-75, the Lee Roy Selmon Expressway and Falkenburg Road. Brandon is one of the best residential areas on the whole West Coast [of Florida] and one of the fastest-growing residential markets in the past 10 years. There's a real need for office space in Brandon."
Duke-Weeks Realty Corp. recognizes that need and, along with office buildings underway in Highland Oaks, is developing a 50,000-square-foot office building at Regency Corporate Center. The firm is also building two distribution centers Ð one of 130,000 square feet, another of 90,000 square feet Ð at Fairfield Industrial Center. "Brandon is one of the most accessible areas in the Tampa Bay region with I-4, I-75, U.S. Hwy. 301, State Road 60 and the Lee Roy Selmon Expressway all there together," says Forrest Robinson, the firm's executive vice president. "Housing is moving into that area and a good employment base is there. We have to create jobs for all those people going to fill up all those apartments. I saw the number of units permitted and it just blew me away."
ProLogis plans to build two light industrial facilities at 140,000 square feet and 75,000 square feet in Sabal Park. "As industrial developers, we think the logistics of Brandon and eastern Hillsborough County are phenomenal," says Charles E. Sullivan, the firm's first vice president. "Its demographics are excellent and the ability of our customers to service their customers within reasonable proximity for both distance and time is very good."
EastGroup Properties Inc. helped Premier Beverage locate in Oak Creek Park last year. "We're about to put 30 acres under contract in the I-75 corridor," says Nancy Phaneuf of EastGroup. "We plan to build more buildings. The office user can create a wonderful environment and have a lower cost basis. We're in Brandon for that reason."
Two new buildings are planned in Pinebrooke. "We'll deliver a 45,842-square-foot building late this summer," says Bob Dikman of the Dikman Companies, which handles leasing at Pinebrooke. "The 53,195-square-foot building will be finished in late fall."
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Premier Beverage Company's 222,000-square-foot building in Oak Creek Park, built by EastGroupProperties, features roof insulation and an upgraded slab.
Photo:D.J. Wilson
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Frito-Lay is building a 50,000-square-foot distribution center at Pinebrooke and engineering firm Kimley-Horn & Associates recently doubled its space in the business park. "We're doing some multifamily and the whole Florida program for CVS Pharmacies," says Sam Stebbins, the firm's vice president. "That has caused a lot of growth. Our Wal-Mart practice has also expanded. We're handling the West Coast stores."
Retail in Brandon is thriving. The 980,000-square-foot Brandon Town Center recently celebrated its five-year anniversary. "It's been 100 percent occupied since it opened," says Carrie Crawford, the center's marketing manager. "We have 10 million shoppers a year."
Neighboring Lakes of Brandon has built 500,000 square feet of retail space. And "more is coming," Cross says.
A terminal for Vandenberg
With large corporations opening operations along the I-75 corridor, the Hillsborough County Aviation Authority has built a new terminal building at Vandenberg Airport.
"We now have 24-hour coverage to provide service and to fuel airplanes," says Ed Cooley, the Authority's senior director of airport operations and maintenance. "We have a new runway in place and are working on approval from the Federal Aviation Admin-
istration to install an instrument landing system at the airport. It's important for corporate flight crews to be able to land planes under adverse weather conditions. That should be in by next summer."
"That airport has really transformed," says Cross. "It operated out of a farmhouse five years ago. Now we have a terminal."
Also coming to Vandenberg is an air traffic control tower. "That's another amenity to enhance corporate use of the airport," Cooley says.
The other improvement planned for the airport is road access. "The transportation network into and out of the airport is its biggest problem," says Bruce Drennan at the Brandon Chamber. "The Aviation Authority is setting aside money to improve roads."
Long-time business leaders in Brandon see a pleasant reversal in the area's long-held image. "Brandon was considered a bedroom community 10 to 15 years ago," Cross says. "Now that's reversing. Businesses are migrating to Brandon and folks are commuting to Brandon to work."
