The north part of metro Denver is seeing increased activity in industrial real estate thanks to two major projects.
A Georgia-based logistics company has signed a long-term lease for a total of 1.127 million square feet in 76 Commerce Center in Brighton along the Interstate 76 corridor.
BroadRange Logistics, which specializes in providing services for the green-energy sector, is leasing the remaining two of four buildings in the 155-acre regional distribution center. The buildings are at 22250 and 22500 E. 1-76 Frontage Road.
And in Broomfield, Ryan Companies US Inc., a national commercial real estate firm, and PGIM Real Estate, the real estate investment and financing arm of Prudential Financial Inc., have formed a joint venture to develop a project called the Northwest Commerce Center. The companies announced the financial closing Tuesday.
The Broomfield development will consist of two buildings totaling approximately 343,000 square feet within the Verve Innovation Park and adjacent to the Rocky Mountain Metropolitan Airport.
The Denver office of the real estate firm JLL said multiple leases for industrial space along the Interstate 25 corridor have been signed. JLL reported that activity in the first two quarters of 2024 point toward users wanting to lease Class A space, which typically means new. The overall vacancy rate in metro Denver’s industrial real estate market was 9% in the second quarter.
The lease signed by BroadRange on the buildings at the Brighton site accounts for nearly half of the total industrial leasing volume in metro Denver for the second quarter, according to real estate firm CBRE. The firm reported that a total of 2.5 million square feet of industrial space was leased, up 2.6% quarter over quarter.
“Denver is a significant location to support our overall strategy as we expand our business to serve customers nationwide,” Ari Milstein, CEO of Broadrange Logistics, said in a statement.
The industrial park will be BroadRange’s first Colorado location. The company plans to move into the buildings in September and expects to create dozens of jobs in the area. A portion of the property will be used to distribute solar panel components.
Todd Witty and Daniel Close of the real estate firm CBRE represented the landlords, Hyde Development and their equity partner Mortenson Properties Inc., in the transaction. Sam Dragan and Jim Bolt of CBRE represented the tenant in partnership with Atlanta-based Strategic Real Estate Partners.
“BroadRange was attracted to 76 Commerce Center for a number of reasons including its location in the affordable city of Brighton, which offers a deep labor pool for companies located in the I-76 corridor,” Witty said.
The industrial park’s location provides access to the entire Front Range while being only 20 miles from the heart of Denver, Witty added.
The addition of BroadRange at 76 Commerce completes the execution of the original vision for the property and the creation of the I-76 submarket, said Paul Hyde, CEO of Hyde Development.
The Northwest Commerce Center in Broomfield will be 2 miles from U.S. 36 and is 15 minutes from the Northwest Parkway. The buildings are designed to accommodate a range of tenants such as warehousing, advanced manufacturing and other industrial uses. Nearby companies include Medtronic, Ball Aerospace and Covidien.
Construction is expected to start in August with completion anticipated by May 2025.
“This project will service the needs of cutting-edge companies from a variety of sectors that are continuing to set up shop in this fast-growing submarket,” Kirk Monroe, Rocky Mountain region president at Ryan Companies, said in a statement.
Ryan is developing and building the project. Ware Malcomb is the architect. Carmon Hicks, Patrick McGettigan and Jason White of JLL will market and lease the development.
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