Demand for Infill, Small Bay Industrial Buildings Outpaces that for Larger Warehouses

According to CBRE, Monaco I-70 Industrial Park, a four-building property totaling 183,319 square feet, at the intersection of East Smith Road and Monaco Parkway in Denver, in a Colorado Enterprise Zone and Opportunity Zone, has sold for an undisclosed amount.

CBRE’s Jim Bolt, Tyler Carner, Jeremy Ballenger and Jessica Ostermick represented the seller, a confidential Denver-based investor. Stockbridge Real Estate of San Francisco purchased the property in a sale that closed Oct. 17. CBRE has served as the leasing agent for the property since it was developed and retained the assignment.

“Monaco I-70 Industrial Park offers highly-functional Class A space in a central, last mile location within Denver’s prime logistics corridor. With rising transportation costs and customers demanding fast delivery, infill industrial locations that cater to last mile users are in high demand,” said Jim Bolt, executive vice president, CBRE.

According to an Oct. 2019 CBRE U.S. MarketFlash, demand for well-located, small bay industrial buildings of less than 120,000 square feet, like those found at Monaco I-70 Industrial Park, continues to outpace that for larger warehouses, driven in large part by urban population growth and same-day delivery expectations of consumers. CBRE’s research finds that rents for small bay, also called light industrial, spaces in the U.S. have climbed more than 30 percent over the past five years, compared to 16 percent growth for large warehouses over 250,000 square feet.

The four buildings were built between 1998 and 2007 and sit on a total 9.89 acres. Class A features include ESFR fire protection systems, drive-in and dock-high loading and office space. Monaco I-70 Industrial Park is 100 percent leased to five distribution tenants: Restoration Hardware, Red Bull Distributing, Shred-It USA, Classic Beverage and Majestic Hearth Distribution.

“This infill location is at the west end of the Airport submarket, Denver’s primary logistics arterial, but it performs as if it is an extension of Denver’s Central submarket with great accessibility to the region’s population and high barriers to future supply. Together the two submarkets are home to 60 percent of Denver’s industrial square footage and are the most desirable for top distribution tenants in Denver,” added Mr. Bolt.

Image courtesy of CBRE

Related Posts

Scroll to Top