Full-service commercial real estate development company, VanTrust Real Estate, LLC , has launched a 59-acre spec logistics park in El Paso, in response to rapidly increasing demand for industrial space.
“We’ve seen tremendous demand for industrial property in El Paso over the past few years, which creates a great opportunity for VanTrust to enter this dynamic marketplace with one of the region’s largest spec industrial projects,” said Josh Meredith, director of development at VanTrust. “We’re confident that the city’s geographic benefits and Texas’ business-friendly environment will continue positioning El Paso as a destination of choice for industrial customers.”
Phase I of the logistics park, which is VanTrust’s first El Paso project, consists of four buildings totaling over 514,135 square-feet. Two additional buildings totaling 480,504 square-feet will be constructed during Phase II of the project.
The park will be located between Mercantile Avenue and Paseo Del Este Boulevard, bordered on the east by the new Bill Burnett Drive.
“There has never been a more dynamic time for the industrial market in El Paso,” said Bill Caparis, senior vice president in CBRE’s Industrial and Logistics practice in El Paso. “We’re seeing industrial occupancy rates at 96.5% as global brands realize the benefits of having a location along the U.S. – Mexico border. Much of this demand is driven by a desire for companies to protect their supply chains and reduce taxes by reshoring their operations from China to North America, particularly Mexico, along with growing consumer reliance on e-commerce retailers. El Paso is ideally positioned to serve as a strategic international distribution point for those companies.”
As one of the world’s largest border communities, El Paso is experiencing record-breaking demand for industrial space, with more than 182,000 square-feet of space absorbed during the first quarter of 2020.
Approximately 100,600 square-feet of industrial space was completed, and 652,189 square-feet of industrial space was under construction during the same timeframe, according to CBRE. The first quarter closed with 2.9 million square-feet of industrial space available for lease at 66 industrial properties. Most of these properties have less than 30,000 square-feet of space available., with only nine properties offering customers the average lease size range of 40,000 square-feet to one-million square-feet.
Company officials add that Phase I of VanTrust’s logistics park is slated for completion in early 2021. Phase II will commence upon completion of the first phase.