Scannell Properties Sees a Record 6 Buildings Over 1 Million SF of Development in 2020
A Boom in Million SF Development Projects Nationwide
A plethora of cranes and other industrial equipment can be seen on the skylines of many U.S. cities and their suburbs as Scannell Properties recognizes that commercial construction is at a historical high. Confident in the demand, they are forging new development projects that will help fuel the economy.
Current market research confirms that although the COVID-19 outbreak has caused CRE markets to slow, experts still expect robust industrial growth this year, and Scannell Properties is well poised to deliver as they continue to close some of the largest land and development deals in its 30-year history.
In fact, this year alone Scannell expects to construct a record total of 6 buildings exceeding 1 million SF each in markets like Memphis, Atlanta, Chicago, and Hartford.
One “hot growth spot” for Class A million square foot developments can be seen in the adjacent suburbs of Memphis, Tennessee, where Scannell is currently developing properties in both Horn Lake and Olive Branch in DeSoto County. Scannell Properties just broke ground on a 1,021,440 SF speculative cross-dock distribution facility on a 92.4-acre site in Horn Lake, named Scannell 55 Logistics Center. This facility is geared towards 1-2 tenants and it’s well positioned, only minutes from FedEx’s Super Hub, the country’s largest air cargo hub/airport, and the BNSF intermodal yard. Delivery date is expected in May/June of 2021.
In nearby Olive Branch, Scannell is also under construction on two single-load distribution facilities totaling 470,000 SF that will be delivered Q4 2020 and Q1 2021.The buildings are strategically positioned close to major highways including: I-55; I-69; Hwy 51; 14 miles from Memphis Int’l Airport and 12.6 miles from UPS HUB and FedEx World Hub. It is also 13.3 miles from BNSF Railway – the third largest cargo railway in America.
The suburbs of Memphis are highly desirable to global commerce businesses. As the home to FedEx, Memphis has long been a major distribution and logistics hub. But in addition to global commerce, Memphis is now becoming a thriving center for technology and healthcare companies. St. Jude Children’s Research Hospital is in the midst of a $7 billion expansion, and a new University of Memphis research park has already supported a number of startups and expanding tech ventures.
Since 2015, Memphis and neighboring counties have won more than 85 economic development projects representing more than $4 billion in capital investment and 12,300 new jobs. In 2019 alone, approximately 20 businesses invested $883 million and announced nearly 2,800 jobs in Memphis.
All of this activity has opened up brand new potential for Memphis and its economy and Scannell Properties is playing a key role in developing a new wave of construction projects.
Horn Lake’s listing broker, Mark Jenkins, SIOR, CCIM, said “This development is located on the highly coveted Interstate 55 corridor in DeSoto County, an area just south of Memphis, TN. It has become a preferred submarket for distribution relocations in recent years due to land availability, new construction, a strong workforce, and low taxes. Horn Lake’s business-friendly climate is also highly desirable and I’m confident that Scannell 55 Logistics Center will attract significant interest from tenants and users and further increase the demand for space in this area.”
Olive Branch broker Preston Thomas, SIOR said, “We have seen over 50 million SF of new construction built in the DeSot0 County submarket in the past ten plus years where Olive Branch Mississippi is located. Scannell’s new site is adjacent to the new FedEx Ground Terminal, which recently experienced a substantial expansion. Scannell is building a product that is very flexible that can accommodate small and large tenants with ample auto and trailer parking - to meet the market demand at this time. There are also great amenities in the area and the public schools in north Mississippi are very desirable. Olive Branch is a suburb to a large US city with all the amenities, which is highly sought out not only by businesses, but their employees.
Logistics and distribution centers are attracted to Memphis and the mid-south region for many reasons:
- 2ndLargest cargo airport in the world (largest in U.S.) with FedEx Super Hub & UPS Hub
- One of only 3 cities in U.S. with 5 Class I Railroads
- 3rdbusiest trucking corridor with 3 Interstates-70% of the U.S. population are within 48-hour drive-time from Memphis due to its central location
- 3rdlargest inland port in U.S. with its location on the MS River
Other attractions that heighten the appeal is:
- Home of World Class Bar-B-Q-Annual World championship Bar-B-Q Fest
- Home of the Blues
- Shelby Farms is the largest municipal park in U.S.
- St. Jude, FedEx, International Paper & AutoZone World HQs.
Scannell Managing Director Tim Elam says, “We are very excited about expanding our presence in the greater Memphis area and hope these Class A buildings will provide real estate solutions for the growth and development of some great companies.”