The industrial market continues to boom across the Midwest as 2018 comes to a close. This is inspiring more developers to take on spec projects in this sector. A good example? The 204,000-square-foot spec industrial building that The Opus Group is building in Maple Grove, Minnesota.
On Dec. 19, Opus announced that it was starting construction on the Arbor Lakes Corporate Center in collaboration with Inland Development Partners. The construction site is located at the northeast corner of Zachary Lane and 85th Avenue in Maple Grove. The site is 13 acres.
“Commercial tenants’ demand for space in the northwest submarket remains strong, and this unique development will enjoy attention from businesses drawn to the amenity-rich Maple Grove community,” said Phil Cattanach, senior director with Opus Development Company, in a statement.
The building will feature 28-foot clear height ceilings, 32 docks and two drive-in doors. The development offers about 300 parking stalls to suppord the demand for office and lab space in the submarket. Construction is expected to wrap in late 2019.
This isn’t the first major development that Opus has brought to Maple Grove. Previously, Opus developed the Arbor Lakes Lifestyle Center, a shopping, retail and entertainment destination for customers from the north metro area and upstate region.
Of course, Opus is far from the only developer tackling spec industrial construction. The industrial sector remains the strongest in commercial real estate as 2019 begins.
For a hint of a how strong, consider some industrial research from Marcus & Millichap. Marcus predicted that developers would complete 260 million square feet of new industrial construction in the United States this year.
At the same time, Marcus & Millichap predicted that industrial rent growth would rise 6.2 percent this year when compared to 2017. The company predicted that industrial rents would hit an average of $7.01 a square foot in the United States during the fourth quarter of this year.
Vacancies continue to fall in this sector, too, with Marcus & Millichap predicting that the U.S. industrial vacancy rate would drop to 4.8 percent by the end of the year. Last year, the country’s industrial vacancy rate dropped below 5 percent for the first time ever.