Dive Brief:
- Majestic Realty will build three new buildings in its Aurora, CO business park. The 834,500 square foot development will be the largest single-phase industrial project in the state's history, the company said Monday.
- The developer will break ground this fall and expects to complete the project next summer. The three buildings measure 523,260 square feet, 154,320 square feet and 157,000 square feet, and can each be broken down into smaller units to house various tenants.
- The project will cost roughly $30 million and will bring Majestic's rentable storage space to roughly 4.2 million square feet between 17 buildings, Business Den reports. The company speculates it will lease the larger warehouse's space at $5 per square foot, while the smaller storage areas may sell between $6 and $6.50 per square foot.
Dive Insight:
Majestic pre-leased 452,000 square feet of storage to Amazon earlier in the year, which left it with limited space to service a Denver/Aurora market that can require over 1 million square feet of storage, the company said in a Business Den interview.
The expansion represents a national drive for increased warehouse space as e-commerce drives business-to-consumer companies to increase their inventory or shipping speed for immediate fulfillment needs. Meanwhile, industrial vacancy rates nationwide are decreasing according to national real estate reports, which suggests favorable conditions for the construction of new facilities.
