Colorado-Real-Estate-Journal_421031

Page 20 — Office & Industrial Quarterly —September 2024 www.crej.com INDUSTRIAL — DEVELOPMENT 45th & Telluride Evergreen has made plans to construct 2 new industrial buildings—Building 1 (154,702 SF) and Building 2 (124,672 SF) on 16 acres on the southwest corner of 45th and Telluride Street in the Green Valley Ranch area. Weather permitting, this project should be completed by July of 2025. 5120 Osage St., Suite 100, Denver, CO 80221 Phone (303) 420-0234 Fax (303) 420-7666 www.murrayandstafford.com BUILDING EXCELLENCE SINCE 1966 T he industrial real estate mar- ket across the United States has seen significant growth in recent years, driven by factors such as e-commerce expansion, supply chain restructur- ing and increased demand for ware- housing and distribution spaces. While large national firms often dominate the industry, midsized and smaller developers play a cru- cial role in shaping the industrial landscape. These developers are essential in filling the gaps left by larger companies, leveraging their agility, local knowledge, and innova- tive approaches to meet the unique needs of the market. n Agility and responsiveness to market needs. One of the most significant advantages midsized developers bring to the table is their ability to be agile and responsive to ever-changing market conditions. Unlike large firms, which often oper- ate with standardized processes and extensive corporate structures, mid- sized developers can quickly pivot and adapt to new opportunities or challenges as they arise. We recently encountered a situa- tion in Salt Lake City that perfectly illustrates this flexibility. We origi- nally intended to develop a 12-acre site into a 175,000-square-foot Class A speculative industrial building. However, as we worked with city officials on a master plan update, rezoning and a development agree- ment, we discovered that our prop- erty would require a more complex subdivision plat process, which would take six to 12 months to com- plete – far longer than the simple lot consolidation we had initially antici- pated. Rather than see- ing this delay as a setback, we used the extra time to move forward with the platting process, to mar- ket the land for build-to-suits or a user sale. Our business plan quickly shifted from speculative industrial development to a user land sale deal, and we are now under a letter of intent with a buyer. This is a prime example of how a midsized developer can nim- bly adjust its business strategy in response to shifting market condi- tions, maximizing the value of the property in the process. Another example of our flexibility can be seen in the Candelas Inno- vation Park, a 31-acre, multiphase Class A development project. We structured this project to provide maximum flexibility, creating four lots, each with a separate building. This approach allows us to adapt to market conditions as they evolve. We have the option to sell the lots to other developers or users, develop the buildings on a speculative basis or build to suit specific tenants. Whether we choose to hold all the buildings or sell them off individu- ally, our flexible approach enables us to maximize the value and utility of the property. n Navigating challenges through local relationships. Strong relation- ships with local governments and communities are essential for navi- gating the com- plexities of indus- trial real estate development. Midsized develop- ers, which often have deep roots in the areas they serve, are particu- larly well positioned to build and maintain these connections, allow- ing them to overcome challenges that might stymie larger, less locally focused firms. Our experience with the North- point Small Area in Salt Lake City is a testament to the power of these relationships. Over the course of two years, we worked hand in hand with City Council, the planning com- mission, city staff and residents to transition the 1,300-acre Northpoint Small Area from agricultural to light- industrial use. Our involvement was not limited to our 12-acre site under contract; we organized commu- nity meetings, created petitions on behalf of local landowners, and col- laborated with City Council to draft zoning language that was eventually incorporated into the development code. While our initial interest was in a single site, our deep understanding of the area and the strong relation- ships we built allowed us to benefit multiple landown- ers across the entire 1,300-acre area. Moreover, our extensive knowl- edge of the local landscape enabled us to forge new partnerships and uncover additional niche opportuni- ties, demonstrating how local expertise and community engagement can open doors to new developments. n Capitalizing on niche opportuni- ties. Midsized developers excel at identifying and capitalizing on niche opportunities – those that are often overlooked by larger, more risk-averse firms. We have found a distinct competitive advantage in seeking out these unique opportu- nities, leveraging our expertise and creativity to unlock the full potential of underutilized properties. One such opportunity arose in our partnership with a landowner in the Northpoint Small Area. This landowner originally planned to sell his 120-plus-acre property to home- builders. However, we saw an oppor- tunity to use our industrial exper- tise to add significant value. While many larger institutional groups were interested in purchasing the property at agricultural land values, we took a different approach. We aligned ourselves completely with the landowner, leading the efforts Midsized developers help shape industrial Megan O’Brien Chief executive officer, OCC Industrial James Carolan Chief financial officer, OCC Industrial Will Channell Chief development officer, OCC Industrial Please see O'Brien, Page 28