Unlike the adjacent Orlando area, where development has extended to several areas along the periphery, the broader Melbourne market faces a different challenge that is limiting its growth. In addition to being a more niche industrial market than its neighbor to the west, much of the available land in Brevard County is undevelopable because of the proximity of surrounding wetlands. As a result, the development pipeline has been slim for the past decade, averaging less than 400,000 square feet of new industrial space added annually during that period.

Investment activity has also been modest over that stretch, with an average of only about $75 million in annual sales volume in the last 10 years. Very little institutional activity occurs in the broader Melbourne market, and large deals are uncommon.

Yet the region is starting to attract interest from larger investment firms. For example, the largest industrial sale in the market’s history occurred in January 2025, when Houston-based private investor and developer Hines acquired Titusville Logistics Center. The 247,000-square-foot warehouse and distribution building was sold for $42.2 million ($171 per square foot) at a 5.5% capitalization rate. That single deal has comprised roughly half of all industrial investment activity in Brevard County in the last 12 months.

Alfonso Munk, co-head of investment management at Hines, said that advancements in the space industry, the growth of private companies associated with aerospace, and the change in administration drove their decision to acquire Titusville Logistics Center. The property also has a solid rent roll of five excellent credit tenants who are all associated with the space industry.

But Hines is not limiting its interest in Brevard County to one acquisition. A significant new industrial project is on the horizon as well, with an ambitious completion date. Munk noted that industrial tenants needing more space in Brevard County are generally not willing to prelease new construction and are moving outside of the market. “We were seeing that the overflow of demand for warehousing space was moving toward Orlando,” said Munk.

The supply and demand imbalance for quality space and prospects for growth in the near- to medium-term prompted Hines to move forward on plans for a new multi-phased industrial project in Space Coast Innovation Park. The first phase of the project will include 640,000 square feet of industrial space with plans to complete the space by the end of 2025. The site, which totals roughly three million square feet of land, can accommodate up to two million square feet of industrial space. Hines does not own the land but has a long-term lease in place with Space Coast Regional Airport.

The project has yet to land a tenant, but Hines reports a solid level of interest. Early discussions have already taken place with some of the biggest names in aerospace and space exploration.