Building is underway at Solar Empire, a 3.9 million sq. ft. industrial improvement in Aurora, Colorado, close to Denver Worldwide Airport. The challenge is a three way partnership between The Opus Group (Opus) and Principal Actual Property Buyers, which collectively acquired the 316 acres of land seven months in the past. Section One will embrace two Class A buildings—one sized 624,535 sq. ft. and one sized 204,496 sq. ft. with each buildings accessible for occupancy within the first quarter of 2024.
The challenge has as much as 1.4 million sq. ft. of speculative buildings accessible for lease, build-to-suit for lease or sale, and user-land sale. CBRE’s Todd Witty and Daniel Shut are advertising and marketing Solar Empire for lease, sale and build-to-suit improvement.
“Rising rates of interest have pushed some actual property traders to the sidelines and compelled them to hit the pause button on new improvement. Elevated tenant demand in metro Denver’s industrial market and a slowdown in development begins will additional restrict provide, making it tougher for tenants to get the area they want inside their desired timeframe. Solar Empire’s speed-to-market is a key differentiator as these on the lookout for industrial actual property in better Denver want the area as quickly as potential,” mentioned Mr. Witty, SIOR, senior vp at CBRE.
Complete availability of business actual property in metro Denver decreased 30 foundation factors year-over-year to shut out 2022 at 7.2%, in keeping with CBRE analysis. That is approaching the market’s file low of 6.4¬% availability, set in 2014. Persistent tenant demand, sturdy leasing exercise and a slowdown in development begins level to additional availability price compression within the coming quarters.
Opus is using a number of strategies to make the Solar Empire development course of as environment friendly as potential. For instance, they’re mass grading your complete 316-acre web site, versus simply the primary two constructing parcels.
“Getting ready the entire web site directly means if a tenant is considering Solar Empire, however one of many first two speculative buildings doesn’t meet their wants, they will provoke a build-to-suit elsewhere within the park instantly,” mentioned Mr. Shut, senior vp, CBRE.
Opus can also be investing in snow removing on the web site throughout development, so groups can proceed working and never lose days ready on snow soften.
The primary two buildings will each have dock-level and drive-in loading with greater than 140 trailer parking areas and 660 automobile parking areas between the 2 properties. Constructing 1A, which is the bigger constructing, is a cross-dock design that’s divisible to 156,133 sq. ft. Constructing 1B is a rear-load design with parking within the entrance and is divisible to 51,124 sq. ft. Alternatively, both constructing might be leased to a single tenant. Moreover, there are facilities included into the speculative designs from the beginning, together with workplace suites and dock levelers.
“Our imaginative and prescient with the primary two buildings is to supply a turn-key resolution for future tenants. We determined to take the additional step to speculate proper off the bat within the facilities we all know assist tenants function higher. We’ve got additionally sized the primary two buildings to satisfy the bifurcation of demand out there for each small-bay industrial area and enormous, bulk distribution area,” mentioned Joe Swensson, director of actual property improvement at Opus.
Opus is the developer, design-builder, architect and structural engineer of file on Solar Empire as a part of its household of firms.
Solar Empire is situated at East 56th Ave. and Harvest Rd. in Aurora. It’s a five-minute drive from Denver Worldwide Airport, two minutes from E-470, eight minutes from I-70 and roughly 25 minutes from downtown Denver. Greater than 30,000 new houses are deliberate within the neighborhood with a surrounding workforce of 60,000 transportation and warehouse employees.
The primary part of development is happening on the northwest nook of the property, leveraging entry to present utilities and infrastructure already in place. Later phases, which might nonetheless be influenced by tenant desire, can accommodate constructing sizes starting from 200,000 sq. ft. to 1 million sq. ft. Every constructing within the park is slated to incorporate substantial trailer and automobile parking, in addition to dock and drive-in loading.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 firm headquartered in Dallas, is the world’s largest business actual property companies and funding agency (based mostly on 2022 income). The corporate has roughly 115,000 workers (excluding Turner & Townsend workers) serving purchasers in additional than 100 nations. CBRE serves a various vary of purchasers with an built-in suite of companies, together with amenities, transaction and challenge administration; property administration; funding administration; appraisal and valuation; property leasing; strategic consulting; property gross sales; mortgage companies and improvement companies. Please go to our web site at www.cbre.com.