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DULLES, VA-ProLogis is beginning the second phase of development at ProLogis Park Gateway, a 50-acre industrial park near Washington Dulles International Airport. The Denver-based firm plans to build 399,000 sf of additional light industrial and distribution space at the park, which is located on Route 606 and Pacific Boulevard. A total of five buildings will be built in Phase II, with the first three scheduled for completion in August 2006.
Mark Levy, vice president and market officer for ProLogis, tells GlobeSt.com that it has sold one 65,000-sf building to Federal Bakers, which services Starbucks. ProLogis plans to lease the other two buildings under construction.
Once those two buildings are substantially leased, Levy says, ProLogis will build the remaining two buildings that are to be part of Phase II. "We already have the building permits for those buildings. We anticipate we will be able to start by the end of the year."
Three more buildings will be built during Phase III, which is expected to begin in late 2007 to early 2008. The buildings range in size from 65,000 sf to 96,000 sf.Phase I, which totaled some 160,000 sf, was completed in 2005. It is now more than 75% leased.
The Dulles Airport's vacancy rates are at less than 6%, Levy says. Rents in the industrial park are averaging $830 triple net and $5 tenant improvement, which is consistent with the rest of the region, Levy says. "We are seeing a range from $775 without a TI allowance to roughly $8.30 with the allowance." Current ProLogis customers at the park include the Airline Pilots Association, the Washington Post Co., Corporate Express Office Products, Nippon Express and Sears Logistics Services.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
