With demand for industrial warehouse space “at an all-time high,” commercial real estate firm JLL announced that Gateway TradePort in Pontoon Beach, will soon deliver its fourth and largest building, a 1-million-square-foot speculative warehouse.
The building, which is expected to delivery by the third quarter of 2022, is the first spec facility of its size to be built in the St. Louis market. NorthPoint Development has a total of 11 industrial buildings planned for its 600-acre, 7.8-million-square-foot development located at the intersection of I-270 and I-255 in Illinois.
The plan for the building was recapped in an Illinois Business Journal story earlier this month.
David Branding, managing director for JLL’s industrial brokerage division, said, “The most significant challenge right now for tenants is finding large blocks of space available to lease. Nationwide, we’ve run out of product, particularly if you’re looking for 100,000 square feet or larger of Class A warehouse space. NorthPoint’s massive new building is in response to the demand we’re seeing in this market and across the country.”
According to JLL research, all the major industrial parks in St. Louis are currently at capacity. Industrial vacancy sits at 4.3 percent. As of June, more than 1.1 million square feet has been absorbed in the St. Louis market, of which 703,000 square feet is in the Metro East submarket. Approximately 6 million square feet of industrial space is under construction or planned in the next year.
“Landlords and developers are making big bets to bring more supply to market. Next year will tell if those bets were large enough to meet demand.”