600,000-Square-Foot Warehouse Park Planned for Nashville
Tuesday, November 10th 2015
NASHVILLE, TN – Developer Panattoni sees Skyline Distribution Park addressing shortage of industrial space.
One of the Nashville-area’s largest industrial developers has paid $1.93 million for 44 acres on Brick Church Pike with plans to build a new warehouse park.
Panattoni Development Co. plans to start construction this month on Skyline Distribution Park, which will offer 600,000 square feet of space in three buildings. Set for completion by fall 2016, it will be Davidson County’s first Class A warehouse product built without tenants in hand in more than six years.
STORY HIGHLIGHTS
• Panattoni paid $1.93 million for 44 acres on Brick Church Pike for project.
• Skyline Distribution Park will be first Class A speculative warehouse product built inside of Davidson County in more than six years.
Jeff Konieczny, a development manager for Panattoni’s southeast region, said the industrial park should help to address a shortage of modern “infill” warehouse space within a three- to four-mile radius of downtown.
“Given all of the redevelopment that’s going on, the city is losing some of its industrial base,” he said. “The real benefit of this property is going to be its visibility and access to the highways.”
The contiguous land Panattoni bought from the Oman family includes 33 acres at 2011 Southerland Drive and 11 acres at 2811 Brick Church Pike, down that street from West Trinity Lane.
The three planned warehouses of 375,000, 125,000 and 100,000 square feet will have visibility from Interstates 24 and 65. They will accommodate users ranging in size from 20,000 square feet to 375,000 square feet.
Alston Construction, Panattoni’s integrated contractor arm, will build Skyline Distribution Park. JLL is the exclusive leasing agent with Bo Fulk, a local vice president at that commercial real estate firm, and associate broker Jimmy Armistead handling the assignment.
“Skyline Distribution Park will be perfectly positioned to service Nashville and the region as a whole,” Fulk said. “Visible from Interstate 24 and Interstate 65, tenants of Skyline will have direct access to downtown Nashville, I-24, I-65 and I-40 via Briley Parkway.”
Newport Beach, Calif-based Panattoni is among the most active players in the Nashville region, where the company has its southeast regional office.
The developer recently delivered the 1.1 million square foot Under Armour warehouse building in Mt. Juliet and is developing a pair of 600,000-square-foot buildings at CenterPointe Distribution Park in La Vergne.
On Nashville’s Music Row, Panattoni is wrapping up development of a five-story, 98,000-square-foot building at 35 16th Ave. S. Performing rights organization SESAC will be the anchor tenant with the Country Music Association among other tenants
In its third quarter local industrial market snapshot, real estate firm Cushman & Wakefield Nashville noted that auto manufacturing, logistics and construction are contributing to a healthy industrial real estate market, where new industrial product has not kept pace with absorption for several years.
The vacancy rate for all industrial space fell a full percentage point since the first of the year to 5.5 percent, which the report said is the lowest level since 2007.
“The rate has declined steadily since the recession, again due to construction not keeping up with demand,” it added.
Konieczny, Panattoni’s development manager, said nearly all of the modern functional warehouse buildings within a three- to four-mile radius of downtown Nashville are occupied. Meanwhile, the older supply is either functionally obsolete or planned for redevelopment into multifamily, hospitality or office properties to accommodate Nashville’s exploding population base, he said.