Joint Venture To Develop $42.5M Last-Mile Industrial Property In Seattle Opportunity Zone

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Real estate investment firm GTIS Partners and real estate developer Ryan Companies have formed a joint venture to develop a last-mile industrial/urban logistics property located in one of Seattle, Washington's Qualified Opportunity Zones.

Once completed, the $42.5-million development will span 126,646 square feet across four stories. The site is located just 1 mile south of downtown Seattle and adjacent to several Port of Seattle terminals in SoDo, which has unique access to the urban core markets of Seattle and the hub of bulk distribution facilities located farther south in Kent Valley. 

Demand Grows For Urban Industrial Space: Industrial spaces have been moving closer to the urban core of major cities as the need for last-mile distribution facilities grows. The continued adoption of e-commerce and growing expectation for fast delivery means logistics companies need more distribution centers closer to consumers.

Zoning regulations in most cities limit the supply of available land to develop these last-mile facilities, which makes projects like this one attractive to investors. 

Seattle Industrial Real Estate Market: Institutional investors have been active in Seattle’s industrial real estate market over the last year. This is largely due to its growing population and the Port of Seattle being the fifth-largest container gateway in North America.

The industrial REIT Terreno Realty Corporation TRNO acquired roughly 52,000 square feet of industrial space less than one mile from this new development in May of this year. 

Another industrial REIT, Duke Realty DRE, started development of a 192,000-square-foot logistics warehouse in Seattle’s Kent Valley Market, which was slated to be available for occupancy Aug. 1, 2021.

Photo: Dustin Taylor on Unsplash.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.