The Opus Group is planning a 132,200-square-foot facility in the northwest metro city of Dayton, with plans to target businesses that might need a smaller footprint than the market is currently supplying, according to a news release from the developer.
The land for the development was purchased by Opus last week in a cash deal worth a little under $2.18 million, according to a certificate of real estate value . The property was previously owned by an individual and was vacant.
Located at 17600 Territorial Road in Dayton, the property sits near the interchange of Dayton Parkway and Interstate 94. That will make it a desirable location, said Nick Murnane, Opus vice president and general manager of real estate development.
Murnane said the development received approval from Dayton in December 2023.
According to the news release, the planned warehouse will have 19 dock doors, four drive-in doors, a clearing height of 28 feet and parking for 136 vehicles. It sits on 10 acres of land.
Out of the 132,200 square feet available, 87,000 square feet have been spoken for by TurbinePROs, a Rogers-based company that builds turbines, generators, pumps and compressors. The remaining 44,000 square feet is available for lease.
The property is aiming for an early 2025 construction finish. Dan Swartz and Austin Lovin of CBRE will be the leasing team. Swartz said in an interview that over the last few years, new warehouses have catered to large bulk tenants. Opus is targeting the niche in the marketplace that is not being served, Swartz said.
“This is one of the first examples, and there’s some others that are happening around town, where you’re going after some of the smaller tenants,” Swartz said.
In an email statement to Finance & Commerce, Murnane said the northwest market has been a strong submarket for large and small operations.
“This particular project allows us to differentiate from the competition and meet the demand of tenants looking for smaller footprints than what is currently being offered in the market,” Murnane said. “The fact that TurbinePROs signed a lease before construction even began is, I believe, a reflection of the need for this type of offering.”
Swartz said the remaining 44,000 square feet can be taken up by one tenant or several. Swartz said the key is “having flexibility” for tenants.
The delivery of speculative small-footprint warehouses can’t come soon enough. According to first-quarter data from Cushman & Wakefield, small space users will be bearing the majority of the weight of future rent growth in the market. Hudson Brothen, an executive director for Cushman, said in a May interview that he expects users with 100,000-square-foot footprints to hold steady or slightly increase in rent. He expects small footprints around 30,000 to 40,000 square feet will have huge increases.
Swartz said he has seen very little product added to the market, and that limits availability.
“We can expect to see a continuation of limited availability, i.e. low vacancy and upward pressure on rents,” he said.
According to a Cushman & Wakefield report, industrial vacancy sat at 4.5%, and 2.5 million square feet of industrial space is being constructed.
RELATED:
Cushman broker expects big rents jumps for small industrial spaces
Just Sold: Creative Memories sells campus, stays tenant
Sustainable apartments in Whittier nearly ready
Copyright © 2024 BridgeTower Media. All Rights Reserved.
Most Popular
Comments / 0