AURORA | Paltry vacancy rates for available industry space across the metro area will see a temporary surge later this year following the completion of a new 452,000-square-foot industrial warehouse in east Aurora.
Los Angeles-based development company Majestic Realty announced April 21 that it plans to break ground later this month on a 452,400-square-foot speculative industrial space and distribution facility in its Majestic Commercenter at the intersection of I-70 and Tower Road. Set to occupy over 22 acres, the facility will boast 375 car parking spaces, 116 trailer parking spaces and is expected to be completed by Nov. 1.
A favorable market, meager industrial vacancy rates across the metro area and recently re-negotiated lease agreements with tenants in Majestic’s existing 500,000-square-foot Aurora facility all contributed to the company’s decision to double down on construction. The new facility will sit adjacent to Majestic’s existing manufacturing facility, and will bring the Majestic Commercenter’s total square footage to nearly 3 million.
“We’ve taken a very close look at local and national market conditions, vacancy and absorption rates, product supply and the success we’ve had providing large, high-quality, high-cube industrial space that is the best in the market,” Randy Hertel, executive vice president and director of development for Majestic, said in a statement. “We’re excited about the opportunity to continue that momentum in our park and we strongly believe that now is the time to bring the space to the market in anticipation of our growth late this year and into 2016.”
Industrial space vacancy rates in the metro area stood at about 5 percent in the third quarter of 2014, according to industry reports conducted by Cassidy Turley Real Estate Services and CoStar Group. Vacant industrial space in Aurora specifically clocked in at a rate of 7.1 percent, which is a number half of what it was in mid-2011 according to the Aurora Economic Development Council. Industry experts have pointed to the proliferation of marijuana grow operations in the metro area as one of the central culprits for the region’s plummeting amount of industrial spots.
Fresca Foods and Niagra Bottling are the two tenants of Majestic’s existing warehouse near I-70 and Tower Road, occupying 158,000-square-feet and 132,000-square-feet respectively.