Page 8 —
COLORADO REAL ESTATE JOURNAL
— December 2-December 15, 2015
DENVER’S NEWEST MIXED-USE OFFICE,
HOTEL, RESTAURANT & RETAIL REDEVELOPMENT
U N D E R C O N S T R U C T I O N
C O M I N G F A L L 2 0 1 6 !
NOW
PRE-LEASING
F ORMER LY KNOWN AS Z B L OCK
1800 WAZEE STREET
DENVER, CO 80202
Greater Denver
by Jill Jamieson-Nichols
Majestic Realty Co. has added
530 acres to its Denver-area
land holdings to meet antici-
pated demand associated with
e-commerce.
Potentially housing some of
the biggest industrial buildings
to be built in Denver, the land
extends east from the compa-
ny’s 1,000-acre Majestic Com-
mercenter at Interstate 70 and
Tower Road to E-470, and from
26th Avenue to 38th Avenue.
The new “e-Commercenter”
positions Majestic Realty to
deliver product to a wide range
of users, from
smaller re-
tailers to the
Amazons of
the e-com-
merce world,
a c c o r d i n g
to Majestic
E x e c u t i v e
Vice Presi-
dent and Dev-
elopment Dir-
ector Randy Hertel.
It will accommodate up to 7
million square feet at build-out,
including four buildings of 1
million sf or more.
“E-commerce is driving the
commercial real estate industry
in ways we’ve not seen before.
We’re seeing greater demand in
the 1 million-and-up square-foot
range with land requirements
and tenant improvements slight-
ly different than the traditional
warehouse and distribution
building,” said Hertel. “With
this additional flexibility in our
overall park structure, we’re
well positioned to accommodate
the increasing activity and wide
range of user needs, from build-
to-suit to land sales and specula-
tive development.”
Majestic bought the land from
the Grimm family, third-genera-
tion homesteaders.
According to Majestic Realty,
online retail sales are expected
to reach $370 billion by 2017, up
from $231 billion in 2013. That
translates into greater demand
for logistics facilities tailored to
the needs of e-commerce.
“It’s speed to market, speed
to the consumer and wanting to
locate these large e-commerce
facilities close to consumers,”
said Hertel. Majestic Realty
has developed five 1 million-sf
buildings for Walmart in the last
24 months in places including
Southern California, Atlanta and
Florida. The large size is neces-
sary because, “They’re storing so
many products and a high quan-
tity of products as well,” he said.
“Our interest with this prop-
erty was knowing that the
trend for the e-commerce-sized
facilities was running rampant
throughout the country. Really,
it’s just a matter of time before
they would end up coming into
the Denver/Aurora market-
place,” Hertel said.
“Companies are circling the
metro market to find solutions
for their e-commerce needs. It’s
a question of when, not if,” said
Cushman & Wakefield Senior
Associate Taylor Hazard.
Majestic Commercenter’s loca-
tion along Interstate 70 and now
E-470, as well as proximity to
Denver International Airport, is
a “huge benefit” for users, Her-
tel said. The company intends
to use the new acreage for large
build-to-suits for sale or lease, or
land sales, to large e-commerce
users. Speculative building will
continue to occur within the
existing park.
Cushman & Wakefield Direc-
tor Kirk Vanino, along with Haz-
ard, represented the seller in the
land transaction and will market
the new site withMajestic Realty.
“Our primary industrial cor-
ridor hasn’t seen a new indus-
trial development like this in 20
years,” said Vanino, who noted
the acquisition bookends the
I-70 industrial corridor. “What
will set this development apart
is the ability to attract tradi-
tional industrial occupiers as
well as now having room for
massive distribution centers
and/or e-commerce facilities
needing 1 million square feet
with ample parking,” Vanino
said.
Majestic Realty acquired
Majestic Commercenter in
1995 and has 14 buildings total-
ing 3.5 million sf, including
a 500,000-sf speculative build-
ing completed in 2014 and a
450,000-sf spec building sched-
uled for completion late this
year. The park’s vacancy rate is
in the single digits.
“When we first started devel-
oping the Commercenter, we
were building 200,000-square-
foot buildings that were divis-
ible down to four units if nec-
essary,” Hertel said. “Today,
the typical building we are
developing is more like 500,000
square feet, but now it is only
divisible to 100,0000 to 150,000
square feet, two to three times
larger than what we were
building in the late ‘90s.”
Majestic Realty Co. is the
largest privately held devel-
oper and owner of master-
planned business parks in the
United States.
s
A site plan for the new addition to Majestic Commercenter
Randy Hertel
