(Read more on the industrial market.)
MANASSAS, VA-ProLogis plans to invest $67 million in the development of a 62-acre park in the Manassas submarket. The company already has a sizable investment in Sterling--its ProLogis Park Gateway, which is currently in phase two of development. Many of the buildings in both of the parks are being developed on spec; however, ProLogis is not concerned that one may cannibalize the other.
Mark Levy, vice president and market officer for ProLogis in Washington, DC and Baltimore, tells GlobeSt.com that the two parks will serve two distinct and separate market groups. "The reason companies locate in Gateway is to be close to the Dulles Airport and the Dulles Toll Road," he says. Companies will want to be in ProLogis Park Manassas for access to the 81 Corridor, Virginia Inland Port and because of labor shortages in Loudoun County.
As a separate matter, he adds, Manassas is a rapidly growing submarket in this area, which is also driving demand for space.
ProLogis Park Manassas, which initial estimates call for a total build out of 162,000 sf, will be located along Interstate 66. The park is expected to hold between six to eight buildings; construction of the first two is scheduled to begin in the second half of 2008.
The buildings will vary in size from 80,000 sf to 210,000 sf. They will be rear load, bulk distribution facilities oriented to regional and super regional users, Levy says. "No flex--this is more of a traditional distribution development."
Meanwhile, the company is also developing building four at ProLogis Park Gateway. Last year it delivered buildings one, two and three. Building one is fully leased, two is not leased and the third building has been sold, as reported by GlobeSt.com. Asking rates for building four, according to Levy, is $8.30 per sf triple net.
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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.
