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Amazon To Lease New Industrial Project In Sterling

A rendering of the Mercure Logistics Center in Sterling, which MRP Industrial is building on behalf of Industrial Property Trust

A speculative industrial project under construction in Sterling, Virginia, appears to have landed the No. 1 tenant in the logistics space. 

Amazon reached an agreement with Industrial Property Trust to lease its new 106K SF Mercure Logistics Center, the Washington Business Journal reports

The facility, being developed by MRP Industrial on behalf of IPT, will become part of Amazon's e-commerce distribution network. The property at 44301 Mercure Circle is near the intersection of the Dulles Greenway and Route 606, about 30 miles from D.C. 

The deal represents a win for the region's industrial market, which has not benefited from the last-mile warehouse boom as much as other parts of the country. Land prices in D.C. and its immediate suburbs have been too high for developers to execute industrial deals, so new facilities have been largely limited to more distant suburbs like Sterling. MRP Industrial also successfully pre-leased a speculative industrial project in Bowie, Maryland, last year when it signed La-Z-Boy for 221K SF. 

Amazon is also expanding its data center footprint in Northern Virginia with at least two new Loudoun County projects. Northern Virginia is vying to be the landing spot for Amazon's second headquarters, with one site on the border of Loudoun County and Fairfax County and others in Arlington and Alexandria. CEO Jeff Bezos told the D.C. business community last week that he is planning to make a decision by year-end.