PCCP, Distribution Realty Plan Nashville-Area Project

Beechcroft Industrial Park. Image courtesy of PCCP LLC

PCCP LLC and Distribution Realty Group are planning the construction of Beechcroft Industrial Park, a three-building project in Spring Hill, Tenn. The two firms formed a joint venture to develop the industrial property, which will be located near a major manufacturing facility for General Motors. Construction is expected to start in October 2022, with an estimated completion in November 2023.

Beechcroft Industrial Park will total 815,530 square feet of speculative warehouse space. The project calls for a 228,580-square-foot rear-loading building, a 244,950-square-foot rear-loading building and a 342,000-square-foot cross-docked building. The 63-acre site will also provide tenants with 716 car parking spaces and 119 trailer parking spaces.

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Located at 825-845 Beechcroft Road, the Beechcroft Industrial Park will be 38 miles south of downtown Nashville. Ryan Dodge, managing director at PCCP, said in prepared remarks that the area is an active industrial node, and that Beechcroft Industrial Park will be adjacent to General Motors’ largest automotive manufacturing facility in North America. PCCP expects its industrial park to see demand from several tenant types, including any automotive-related suppliers due to the proximity to General Motors’ plant.

Growing demand for Nashville’s industrial market

According to JLL’s second-quarter report on Nashville’s industrial market, the metro is seeing a declining vacancy due to strong tenant demand. The metro’s average industrial vacancy rate dropped to a historic low of 3.2 percent as of the second quarter of 2022, with high demand for spaces between 50,000 and 200,000 square feet, and very few options for tenants looking for spaces larger than 300,000 square feet. The market’s average asking rent remained above $6 per square foot and is anticipated to remain high, while plenty of industrial projects are expected to start construction.

Besides the Nashville metro, PCCP is also working on a 1.5 million-square-foot speculative industrial park in Duncan, S.C., that will similarly have three buildings. The firm partnered with Panattoni Development Co. in January to develop the Tyger Ridge Logistics Center. PCCP is also working with Lincoln Equities Group to build a warehouse and distribution center in Bayonne, N.J., that landed acquisition and construction financing in November.