Majestic Realty Co. will build 452,400 square feet of speculative industrial space in Aurora, with plans to break ground this month.
Majestic, based in a suburb of Los Angeles called City of Industry, decided to construct the space after leasing nearly 300,000 square feet of its most recent speculative property. The new project, dubbed Building No. 29, will be built at Majestic Commercenter near the intersection of Interstate 70 and Tower Road.
The property is expected to be complete by Nov. 1. It will sit on 22 acres and will feature build-to-suit office space in addition to industrial uses. Build-to-suit office space refers to when a builder constructs office space only after companies have signed a lease.
Historically low vacancy rates for industrial real estate and the lease agreements on Majestic’s existing building drove the decision to construct new speculative real estate.
“We’ve taken a very close look at local and national market conditions, vacancy and absorption rates, product supply and the success we’ve had providing large, high-quality, high-cube industrial space that is the best in the market,” said Randy Hertel, executive vice president and director of development at Majestic Realty.
“We’re excited about the opportunity to continue that momentum in our park and we strongly believe that now is the time to bring the space to the market in anticipation of our growth late this year and into 2016,” he added.