Colorado Real Estate Journal - October 21, 2015
A lack of industrial space in Northern Colorado and a dearth of new construction are prompting McWhinney to develop 83,890 square feet of speculative space for delivery early next year. The building will be located at Rocky Mountain Avenue and East 37th Street in McWhinney’s Centerra master-planned community in Loveland. “McWhinney sees a huge need for Class A industrial space in the Northern Colorado market,” said spokesman Andy Boian of Dovetail Solutions. A second-quarter Xceligent report puts Northern Colorado’s vacancy rate for light-industrial space at 1.1 percent and vacancy within the Loveland submarket at 2.2 percent, he said. “We see this as an opportunity to quell some of the demand,” he said. As part of Centerra, the development will offer tenants immediate access to Interstate 25 and U.S. Highway 34, as well as more than 1.5 million sf of retail, hotels, a health club, and open space and trails. It will include ESFR fire protection, 6-inch floors and skylights. CBRE brokers Kyle Lundy, Mike Eyer and Jim Bolt are marketing space at $9 per sf triple net. The building will provide 24-foot clear height and dock-high loading – features that aren’t readily available in Northern Colorado, Lundy said. Lundy said there wasn’t a great deal of absorption in the industrial market over the summer, but with vacancies so low and no new construction, tenants don’t have a lot of options. “This building will meet the demand for quality, Class A construction, of which in Northern Colorado there’s almost zero,” he said. The building will be divisible to 11,500 sf and will be suitable for uses including office/ research and development, light assembly, light manufacturing, warehouse/distribution and cold storage. There is the capability of adding a sister building of 84,000 sf. Designed by Ware Malcomb, the building will be constructed by Golden Triangle Construction. It will be the second speculative project that McWhinney has undertaken this year. McWhinney also is building Hahns Peak Two, a 56,000-sf Class A office building. The last industrial building built at Centerra was a build-to-suit for Constant Contact, which was completed in 2009.