CBRE announced that Prologis Park 70, an existing 5.7 million-sq.-ft. industrial park in Aurora, Colorado, will grow by nearly 1 million sq. ft. following the acquisition of a 55-acre land parcel by park owner and developer Prologis.
Prologis plans to break ground on the first of the new buildings in the second quarter of 2023. Initial plans offer two design options. The first would consist of four total buildings—two sized 325,000 sq. ft. and two sized 150,000 sq. ft. The second design calls for one, larger building sized 700,000 sq. ft. and two 150,000-sq.-ft. buildings.
Jim Bolt and Mike Camp with CBRE are representing Prologis and marketing the new space for lease, sale or build-to-suit development.
“Demand persists for high quality distribution space as e-commerce, third-party logistics and retailers look to reach Denver’s growing population and accommodate changing expectations around shipping and delivery timelines,” said Mr. Bolt, vice chairman, CBRE.
The new buildings will have either a front park/rear load or cross-dock design with dock-high and drive-in loading, trailer parking, ESFR sprinklers and 36-ft. minimum clear heights.
“Prologis understands the Colorado market and is developing the right facilities to meet the need at hand,” added Mr. Camp, executive vice president, CBRE.
Prologis acquired the land from US Foods, which is a current tenant at the park. Prologis will begin development speculatively with build-to-suit options available. The first buildings are anticipated to be completed in early 2024.
“Our goal is to support our customers’ growth by providing modern facilities that meet their business needs,” said Kieffer Garton, vice president and market officer for Prologis. “The Prologis Park expansion is doing exactly that by creating spaces designed to enhance logistics operations for businesses operating in the Denver market.”
Prologis Park 70 is a Class A industrial park primarily focused on bulk distribution space. Constructed between 2005 and 2019, the park is currently home to 12 buildings (two jointly owned by Prologis and Prudential) and is 100 percent leased.
The park is located at Interstate 70 and E-470, about 10 minutes south of Denver International Airport. The land parcel slated for development sits at the intersection of Picadilly Road and Smith Road.
Prologis Park 70 is in metro Denver’s Airport submarket, which is the region’s largest industrial submarket and which, yet again, led the market in net absorption in the third quarter of the year. The Airport submarket recorded more than 1 million sq. ft. of positive net absorption in the quarter, according to CBRE research, nearly quadruple the next-closest submarket. Year to date, tenants have occupied an incremental 2.3 million sq. ft. of industrial space in the Airport corridor.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.