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Douglas Development Breaks Ground On Spec Industrial Project In D.C.

Rendering of the new industrial building at 2266 25th Place NE

What may be the first spec industrial building in Washington, D.C., to hit the market in decades is scheduled to deliver by the end of the year.

Douglas Development has broken ground on the new 33K SF development at 2266 25th Place NE, which it expects to deliver in time for the holiday season.

John Dettleff, executive managing director of JLL's Metro D.C. Industrial team, is leasing the development, and he said it is prime real estate for users looking for same-day or next-day delivery hubs in the area.

"Most of the industrial tenants that are in the market want space ASAP," Dettleff said. 

The new space will have 30-foot ceilings and two loading docks for tractor-trailers. Other amenities include 23 parking spaces and six drive-in doors.

Dettleff said he is marketing the space for either a single tenant or multiple high-end, small bay tenants. Dettleff, who has worked in the market for more than two decades, said this is the first spec industrial project to break ground in the District in more than 25 years. 

D.C.'s industrial market is reaching historic levels: Last year, the metro area saw its highest direct asking rates on record, according to JLL. Meanwhile, vacancies are nearing an all-time low, Dettleff said.

The site, near the intersection of Bladensburg Road NE and New York Avenue NE, is also likely to benefit from increased density in the next few years. 

Mayor Muriel Bowser released a road map for development along the New York Avenue corridor, which includes the potential for up to 33,000 new housing units thanks to last year's new Comprehensive Plan allowing more residential density in the traditionally industrial-heavy portion of Northeast D.C. 

Dettleff said the new industrial building will be perfectly situated to take advantage of that residential growth.

"The current residential density and then the growth of residential density will be on the eastern side of the city close to this," Dettleff said. "This property will be very attractive to groups who literally want to put a guy on a moped, or a bike, and deliver groceries, or snacks or liquor ... to the customer base."