The development of Lunenburg Central is fueled by intense market demand, as quality industrial product is becoming increasingly scarce, particularly large blocks of Class A warehouse space. According to the Q4 Newmark Industrial Report, vacancy rates for industrial properties reached an all-time low of 3.3 percent in the Greater Boston market at the close of 2021, with vacancies for warehouse/distribution facilities at 2.4 percent due to increased ecommerce activity. Industrial asking rents rose to $12.27 per square foot NNN in 2021, a 9.7 percent increase from the previous year.
“With the unprecedented demand for Class A warehouse product in the Metro Boston market, where speed to market for tenants is so critical, the decision to build on spec was a strategic one,” said Tim Brennan, Vice President of TBG. “The competition for land has pushed the development of new industrial product further west, and tenants are responding positively, particularly for locations with convenient highway access, like Lunenburg Central.”
The 372,000-square-foot Class A, tilt-up construction warehouse/distribution facility will feature 36-foot clear height, 71 loading docks, and two drive-in doors, with 402 vehicle parking spaces and 94 trailer/van parking stalls (expandable to 120), as well as build-to-suit office space. Lunenburg Central is sub-dividable to 200,000 square feet, and leasing efforts will be handled exclusively by the Newmark Industrial Leasing and Investment Sales team led by Ed Jarosz. Construction financing was led by the CBRE Capital Markets team through Cambridge Savings Bank.
Designed by GMA Architects, Lunenburg Central will be constructed by ARCO National Construction, the 7th largest design/build general contractor in the U.S., with decades of experience building large industrial developments throughout the country. TBG and JMC equity partner Berkeley Partners’ affiliated entities own and operate nearly 9 million square feet of light industrial properties throughout the U.S., including over two dozen assets in Massachusetts. TBG and JMC have an over 20-year history of working together and partnering on various real estate projects.
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“We are proud of the team we have assembled for this development, and the Town of Lunenburg has been a terrific partner throughout the entitlement and permitting process,” said Peter Mahoney, Executive Vice President of Development & Acquisitions for JMC. “Lunenburg Central will deliver much-needed warehouse/distribution space with a best-in-class facility in a rapidly tightening market.”
TBG is real estate development and full-service public affairs and advisory company specializing in issue management, government and public relations, and state and municipal land use permitting. TBG has developed across asset classes including multifamily residential, industrial assets, historic rehabilitation projects, transit oriented mixed-use developments, assisted living facilities, commercial office, and retail projects in the New England area.
Although primarily focused on multifamily real estate, JMC has a long history of developing, acquiring, and managing other product types including commercial office, industrial, and flex buildings, as well as R&D assets. JMC has developed or invested in more than 18,000 apartment homes and more than 1,500,000 square feet of non-residential space throughout New England.
