CRG Breaks Ground on Second Speculative Industrial Facility at The Cubes at Interstate Centre II Near Savannah
With industrial vacancy rate in Savannah hovering at a record low 1.1%, new 463,000-square-foot warehouse will help meet surging demand for modern industrial facilities
SAVANNAH – CRG, the national real estate development and investment firm, today announced it has broken ground on Building E at The Cubes at Interstate Centre II, a 463,250-square-foot spec industrial facility on Interstate Centre Blvd. in Ellabell, Ga., in Bryan County, about 23 miles west of Savannah. CRG will deliver the facility in July 2022. JLL is overseeing the leasing and is in active negotiations with prospective tenants.
Located 1.5 miles from Interstate 16, approximately 15 miles from Interstate 95, and within 25 miles from the Port of Savannah and Savannah-Hilton Head International Airport, The Cubes at Interstate Centre II is designed to help meet Savannah’s surging demand for modern industrial facilities. When completed, the master planned industrial park will offer approximately 4.26 million square feet of Class A . According to JLL Savannah, at the close of the third quarter of 2021, Savannah had zero availability of Class A industrial space, and a record low 1.1% industrial vacancy rate. Over 16 million square feet is under construction in the Savannah area, with more than half pre-leased Even with the increase in development to relieve supply pressures, greater competition for space is making any vacancies move extremely fast in a market with already competitive rental rates and concessions.
“The Cubes at Interstate Centre is well positioned to benefit from the increase in demand for Class A industrial space – much of it driven by increased TEU traffic at the Port of Savannah following the deepening of its navigation channel, making it the third-largest port in the nation,” stated Mike Demperio, executive vice president and Southeast Region industrial leader for CRG. “Savannah has few sites large enough to accommodate facilities of this scale, which requires pushing projects further away from the Port of Savannah and the city. The Cubes at Interstate Centre was developed in the ideal location and benefits from a strong and growing labor pool and the convenient adjacencies to Interstates 16 and 95, creating easy access to the port and downtown Savannah.”
Building E will offer industry-leading features such as 36’ clear heights, an ESFR sprinkler system, 80 9’x10’ dock doors and four 12’x14’ drive-in doors. The project will also provide 185’ deep truck courts, 131 trailer spaces and 225 auto spaces. CRG’s parent company Clayco will serve as the builder for the project and Lamar Johnson Collaborative as architect.
“We are witnessing unprecedented demand for industrial space in Savannah and are excited to partner with leading developers like CRG that offer best-in-class facilities to prospective tenants,” stated Chris Tomasulo, senior managing director for JLL Savannah. “Our team is in active negotiations with full-building prospects and are confident that interest in the broader Interstate Centre project will continue to ramp up given the availability of quality space in a supply-constrained market.”
Building E at The Cubes at Interstate Centre II is the second facility CRG has built in the 300-acre Interstate Centre. The first facility was Building A, a 700,000-square-foot building on 56.3 acres that was fully leased to McKesson Medical-Surgical, a leading medical distributor, and sold to Realty Income in the fourth quarter of 2021. CRG is anticipated to break ground later this quarter on Building B, a 709,000-square-foot industrial space, and Building C, a 1.2-million-square-foot industrial space
“Industrial demand was high pre-pandemic, but COVID-19 significantly accelerated the need for modern e-commerce warehouse and distribution facilities to enable tenants to meet the demands of today’s modern consumer,” stated Shawn Clark, president of CRG. “Building E at the Cubes at Interstate Centre II is another asset built on the strength of our vertically integrated platform, which allows us to develop, design, build and finance opportunities like this quickly and with modern requirements to match the needs of today’s premier e-commerce and logistics users.”
In Georgia, CRG is also developing The Cubes at Bridgeport, a 500-acre master-planned industrial park that can accommodate 8.5 million square feet in the South I-85 submarket of Atlanta, and The Cubes at River Park, a 1,006,000-square-foot speculative industrial building in Butts County, located in Atlanta’s Interstate 75 South submarket. CRG has constructed or has planned developments of its Cubes projects totaling over 7 million square feet throughout the state of Georgia.
CRG continues to expand its Cubes Projects nationally where it has already delivered over 25 million square feet of space. CRG has planned projects, broken ground or completed over 43 million square feet of Cubes Projects throughout the U.S.
CRG is a privately held national real estate development and investment firm that has developed more than 9,000 acres of land and delivered over 200 million square feet of commercial, industrial, institutional and multifamily assets exceeding $13 billion in value. CRG leverages a powerful North American platform with local market expertise and offices in Atlanta, Chicago, Seattle, Southern California, St. Louis, Philadelphia and Phoenix. CRG’s philosophy of developing for the future and anticipating the enhanced needs of next-generation users led to the creation of its industrial brand, The Cubes, and its multifamily brand, Chapter. For more information, visit CRG’s website at www.realcrg.com.
About The Cubes
The Cubes is a North American industrial brand owned and developed by CRG. The Cubes represents CRG’s philosophy of developing for the future and anticipating the enhanced needs of tomorrow’s modern industrial user. The Cubes are designed with an emphasis on sustainability, and implement state-of-the-art specifications, including maximum clear heights, dock doors and trailer storage to keep pace with the shift to consumer-centric logistic strategies. The Cubes are located on strategic sites that take into consideration both logistics and labor supply, always with the end user in mind.
Clayco is a full-service, turnkey real estate development, master planning, architecture, engineering and construction firm that delivers clients across North America the highest quality solutions on time, on budget, and above and beyond expectations. With over $2 billion in revenue for 2017, Clayco specializes in the “art and science of building,” providing fast track, efficient solutions for industrial, commercial, institutional and residential related building projects. For more information visit www.claycorp.com.