Holladay Breaks Ground on 3rd Phase of 700 KSF Nashville Industrial Project
- Oct 28, 2019
Holladay Properties has begun construction on the third phase of its roughly 700,000-square-foot industrial park in Nashville, Tenn. This phase will include five buildings, ranging between 40,000 and 120,000 square feet and will total 330,000 square feet, Allen Arender, Holladay’s partner & senior vice president of development, told Commercial Property Executive. The first building is anticipated to be delivered in the fourth quarter of 2020, with the rest coming online through 2021.
Located on Old Murfreesboro Pike, the 95-acre, 11-building Airport Logistics Park is wrapping up its first and second phases of construction that include six buildings totaling 400,000 square feet. The industrial campus benefits from being adjacent to Nashville International Airport, but it also provides easy access to downtown Nashville, Briley Parkway Loop and interstates 40 and 24.
Holladay’s new buildings are set to feature flexible designs and accommodate tenants looking for spaces between 15,000 and 150,000 square feet. The buildings will feature LED lighting, increased insulation for better building efficiency, native landscaping, security camera surveillance and automated landscape maintenance equipment.
Ronnie Wenzler, executive director of Cushman & Wakefield’s Nashville office, said that demand for Airport Logistics Park’s first two phases exceeded expectations. The brokerage company is in charge of leasing at the property. Wenzler mentioned that 329,400 square feet is already leased to tenants such as Aramark, DHL, Power Home Remodeling Group, Advance Electric & Industrial, PGW Auto Glass, Safeway and Overhead Door, adding that the momentum contributed to Holladay’s decision for Phase III.
Arender told CPE that their tenants have been a diverse mix that have signed leases for spaces ranging from 9,000 to 70,000 square feet. The current roster includes regional tenants that are expanding and companies with established presences, he added. As for the demand for Class A industrial space they’re seeing, Arender said Airport Logistics Park was one of the last remaining undeveloped areas that’s already zoned for industrial use, while others may be looking at building new industrial spaces and facing significant zoning obstacles.
“Industrial spaces are getting built better and better, but finding them is getting harder and harder,” Arender told CPE. “The demand really speaks to how limited availability is and the tenants we see are the ones looking for new functional industrial space, so that’s the niche we’re filling.”
After Phase III is delivered, Arender revealed that Holladay has another 35 acres to develop. However, he explained his company’s focus will be to complete Phase III before starting any planning or design work for the next phase.