CRG Leases 465,250-Square-Foot Warehouse at The Cubes at Interstate Centre II Near Savannah, Ga.
Quick lease-up demonstrates historic demand for Class A facilities with superior transit and labor access
(SAVANNAH, Ga.) Nov 28, 2022 — CRG, the national real estate development and investment firm, today announced a full-building, 465,250-square-foot lease at The Cubes at Interstate Centre II, its 300-acre development within the broader Interstate Centre industrial park in Bryan County, Ga., about 25 miles west of Savannah. A subsidiary of Orlando, Fla.-based retailer Rooms To Go plans to occupy Building E, which was completed on a speculative basis in October, capitalizing on its proximity to robust transit infrastructure including the Port of Savannah.
Building E is the second warehouse developed in The Cubes at Interstate Centre II, which is designed to meet growing demand for logistics and warehouse space driven, in part, by the recent expansion of the Port of Savannah, located about 30 miles east. Interstate Centre II also is less than 2 miles from Interstate 16, 15 miles from Interstate 95 and 25 miles from Savannah/Hilton Head International Airport.
“The latest phase of The Cubes at Interstate Centre II underscores how spec facilities are filling up either during or shortly after construction, as users across industries seek out larger blocks of space with the best-in-class specifications that have become synonymous with our Cubes brand,” said Mike Demperio, executive vice president and Southeast Region industrial leader for CRG. “Building E provides superior access to major population centers while also offering lower labor costs and less traffic congestion.”
According to JLL, Savannah’s third-quarter 2022 industrial vacancy fell to a low of 0.5%, below that of any other industrial market in the country despite a robust construction pipeline comprising 22 million square feet. Meanwhile, year-to-date absorption of 11 million square feet already exceeds the annual record for the market, where average rental rates increased 25.3% year-over-year to more than $6.00 per square foot, another high.
CRG’s first building at The Cubes at Interstate II, the 700,000-square-foot Building A, was leased to McKesson Medical-Surgical in November 2021. The third and fourth warehouses, Buildings B and C, are currently under construction, and a fifth building is planned. Upon completion, The Cubes at Interstate Centre II will offer a total of nearly 4.26 million square feet of Class A industrial space.
“Despite headwinds from rising interest rates and construction costs, Savannah continues to be one of the hottest industrial markets in the country, making it attractive from an investment standpoint despite high barriers to entry,” said Shawn Clark, president of CRG. “We continue to see robust user demand for modern logistics facilities in the Sunbelt – including in Greenville, Atlanta, Birmingham and parts of Texas – and throughout the country, especially in the high-population-growth and port-of-entry markets.”
Located at 1393 Interstate Blvd. in Ellabell, Building E sits on approximately 31.35 acres of land and features 36-foot clear heights and a cross-dock configuration allowing for maximum efficiency. The building incorporates 80 dock doors, 54’x53’ column spacing, an ESFR sprinkler system, four drive-in doors and 181 trailer parking spaces while accommodating parking for 74 cars and 50 trucks. CRG’s parent company, Clayco, served as the builder for the project, while Clayco subsidiary Lamar Johnson Collaborative was architect.
CRG has planned, broken ground on or completed approximately 30 million square feet of Cubes projects for Fortune 500 and other users throughout the U.S. Other developments in Georgia include The Cubes at Bridgeport, a 500-acre master-planned industrial park 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 is a privately held national real estate development and investment firm that has developed more than 10,000 acres of land and delivered over 210 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, Indianapolis, 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.