Duke Speculating With 667,000-SF Warehouse

COLUMBUS, OH-Having done the market research, Duke Realty Corp. is in the ground for its first speculative development at Groveport Commerce Center since 2000. The locally based real estate company is developing a 667,000-sf bulk warehouse and distribution center at the 290-acre park located southwest of Columbus in the City of Groveport.Jeff Palmquist, VP of Duke’s Columbus industrial operations, tells GlobeSt.com that occupancy at Groveport is 96% and the three million sf of vacant space in the greater Columbus market will not be much competition, as it is comprised largely of smaller, older spaces and cannot offer the same incentives as Groveport. Palmquist says that most of the vacant space is in spaces smaller than 200,000 sf and in buildings with less than a 23-foot clear height that do not have modern sprinkler systems.”When you really look at it, our competition is one 500,000-sf building that is under construction and one 350,000-sf sublease space,” says Palmquist. “And we can offer more incentives.”The Village of Groveport offers a 15-year, 100% real property tax abatement, representing a direct savings to tenants of approximately $0.45 per sf per year over other areas. Palmquist says tenants also will benefit from the building’s location in the Groveport Enterprise Zone, which provides up to an effective 10-year, 85% abatement on personal property tax (machinery, equipment and inventory). Additionally, the new facility is a part of the recently expanded Rickenbacker Free Trade Zone, which provides numerous importing/exporting benefits and 100% abatement from Ohio inventory tax. Palmquist says its competitors can provide some of those tax advantages, but not all of them.Scheduled for completion later this year, the new building will be a cross-docked, bulk warehouse/distribution facility measuring 1,450 by 460 feet. The facility has 32-foot clear ceiling heights, 72 truck-dock doors, two drive-in doors, and bay spacing of 40 feet by 50 feet. It will be located on the opposite side of SR 317 from the rest of the Groveport development. Other tenants at Groveport include Gap Inc., Cardinal Health, Philip Consumer Electronics and AC Delco.