Chicago-based HSA Commercial Real Estate and Boston's Great Point Investor recently kicked off work on a 652k SF industrial spec building in Lebanon. We talked with HSA CEO Bob Smietana about why spec industrial's a good play now.
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Bisnow: Why develop an industrial property of this size now?
Bob: Demand's being driven especially by the rise in e-commerce. 2015 ended with a record net absorption in the Nashville market of over 4M SF of industrial space, so current activity will barely keep up with the continued market demand. New industrial construction of over 1.5M SF is underway and over 3M SF is in the pipeline to meet the overall market needs. The demand is there.
Bisnow: Is it also a matter of companies looking for large blocks of space?
Bob: Yes. There's almost nothing on the market now over 200k SF for larger warehousing and logistics businesses, especially in terms of well-located, Class-A industrial space in the Nashville market.
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Bisnow: What are the details of the Lebanon site?
Bob: We own a 40-plus acre site, which is the fifth and final building site in the 100% occupied Commerce Farms Business Center. When complete, the HSA development will consist of the 652k SF industrial building. Overall, the Commerce Farms Business Center will contain about 3M SF of Class-A industrial space with the completion of our building.
We believe the timing of the development, coupled with the modern building specifications—higher clear heights, ample truck docks and abundant trailer parking—should make the project very attractive for prospective tenants.
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