Panattoni Development Company Launching 770K Spec
Monday, August 3rd 2015
ST. LOUIS—Industrial users are occupying new class A distribution space in this robust metro region as fast as developers can finish it. It’s no surprise that Panattoni Development Co., Inc. has decided now is the time to launch a massive speculative industrial building at the Lakeview Commerce Center in the Metro East submarket. The company will begin construction on the 769,500 square-foot building this week and expects to complete it by the end of the year. Officials tell GlobeSt.com its 36’ clear height will set it apart from the competing buildings, which have 32’ ceilings.
JLL’s Terry Stieve, managing director of industrial services, and Katie Haywood, vice president, represent ownership in the development and will act as its leasing agent. There currently are three buildings in the park, totalling 2.6 million square feet. Current tenants include Spectrum Brands, World Wide Technology, OHL and JF Electric.
“Lakeview Commerce Center has been a strong performer and continues to showcase the dominant position Panattoni has in this market,” says Stieve. “In this newest spec building they’ll be leveraging the strength of the market—with no vacancy and an absence of competitive properties—and developing a state-of-the-art facility that is in great demand by today’s warehouse and distribution users.”
Recent experience shows the strength of the market. As reported in GlobeSt.com, in 2014 tenants absorbed a historic level of space and sent the regional vacancy rate plummeting to a 10-year low. And even though there had not been a speculative industrial building in the region since 2007, when TriStar Properties and PCCP, LLC delivered a 673,137 square-foot speculative distribution building this spring, also in Metro East but with 32’ clear heights, Saddle Creek Corp. quickly signed a lease for the entire space.
Lakeview Commerce Center, located in Madison County, is accessible from two interstate highways, I-255 and I-270, and just 15 miles from the St. Louis side of the market.The building can eventually be expanded to 1.3 million square feet and it includes a 10 year tax abatement, which will ultimately lower the operating costs. Kadean Construction will be the general contractor and the design team will include HDA Architects, Alper Audi and Clayton Engineering.