Biggest “Spec” Industrial Project in Minnesota Complete

Biggest "Spec" Industrial Project in Minnesota Complete | Image Credit: commercialsearch.com
Biggest “Spec” Industrial Project in Minnesota Complete | Image Credit: commercialsearch.com

The one-million-square-foot warehouse near Dayton, Minnesota, known as the Cubes at French Lake, is now unoccupied.

About 20 miles northwest of Minneapolis, construction on a giant one-million-square-foot industrial facility is complete. The worst part? As of right now, the building is empty.

The 1,006,880-square-foot The Cubes at French Lake, an industrial complex situated on around 65 acres near Dayton, is now complete, according to news released on Tuesday by national developer CRG and commercial real estate giant CBRE. The leasing broker for the location is CBRE.

According to CBRE officials, the location is the first “super-bulk inventory distribution centre” in the state. Additionally, the property was built “speculatively,” or without a specific tenant in mind, meaning it was created ready for occupancy. Spec projects have become more and more common in the office market in the last several years.

Senior vice president Dan Swartz of CBRE wrote to TCB that while CRG’s new facility is best suited for one or two tenants, it can easily handle more if the market calls for it.

“The building is completely empty. We are happy with the present activities and are continuing to show the property to a number of potential tenants,” stated Swartz.

At 11500 Dayton Parkway North, CRG made its initial proposal for the project in 2021. In 2022, work on the project officially started. A 40-foot-tall industrial space, 652-spot parking lot, concrete truck court, 231 trailer parking places, 100 dock doors—69 of which are set aside for future expansion—and four drive-in dock doors are all included in the site.

To finish the project, CRG collaborated with Clayco, the parent firm of designer Lamar Johnson Collaborative. The development and investment division of Chicago-based Clayco is called CRG.

A fourth-quarter Colliers industrial building market study states that industrial leasing remained robust in Minnesota in 2023. As a result, rent increased by 23% in the Minneapolis-St. Paul warehouse market.

The development of speculative suites has increased recently, according to the end-of-year report, but Colliers vice president Evan Molde pointed out that this construction is unlikely to continue on the same scale in 2024. The Minneapolis-St. Paul industrial market is more focused on 2025 beginnings and anticipates little new speculative construction in 2024. Build-to-suits are becoming more popular among developers than riskier projects, indicating a cautious and client-centered attitude to development, according to Molde.

Author:
WINTER KEEFER

Source:
https://tcbmag.com/minnesotas-largest-spec-industrial-project-is-completed/


Scroll to Top

Discover more from Minnesota Residential Remodeling

Subscribe now to keep reading and get access to the full archive.

Continue reading

WE ALSO PROVIDE VIRTUAL ON-SITE TOURS AND ESTIMATES!