New York Life Investment Management will break ground June 23 on a 215,250-square-foot speculative warehouse at Gresham's Gateway Corporate Center, near Interstate 84 and Northeast 181st Ave.
The project is the third speculative industrial development to hit the Portland area since the recession and the second announced this week. As the 2014 construction season heats up, it's likely that at least one additional project will be announced in coming weeks.
Speculative projects, or projects planned before any tenants are lined up, represent a major bet by developers that economic growth will deliver tenants by the time construction wraps up.
Tuesday, Beaverton's Specht Development said it is partnering with PCCP LLC to construct Interstate Crossroads Distribution Center, a 493,000-square-foot project at Northeast Cameron Boulevard and Northeast 166th Avenue.
Last year, Capstone Partners and PCCP broke ground on PDX Logistics Center, which will have more than 800,000 square feet when it is fully built near Portland International Airport.
It may look like a tsunami of new activity is hitting the industrial market, but it's no surprise.
Portland's industrial vacancy rate is about 5.4 percent, per the most recent market report from Kidder Mathews. There are few available spaces with 125,000 square feet or more, a significant constraint on expanding business.
The New York Life project will be the fourth building at Gateway and the largest. The first three contain about 40,000 square feet in total.
The new building can be subdivided down to 50,000 square feet and is being marketed by the Kidder Mathews team of Steven Klein, Peter Stalick and Zach Francis.
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