Trammell Crow JV Delivers Northwest’s Largest Industrial Facility
The spec development totals nearly 1.2 million square feet.
Trammell Crow Co. and Diamond Realty Investments have completed Mid I-5, the largest speculative industrial facility ever built in the Pacific Northwest region. Project partners were civil engineer Gibbs & Olson, general contractor Sierra Construction and HPA Architecture. Construction began in August 2023.
The 1,185,327-square-foot building and soon-to-be LEED-certified property is at 2700 Talley Way in Kelso, Wash. The location is adjacent to Interstate 5 and the busy Exit 36, 2 miles north of the Washington-Oregon state line and less than 50 miles from Portland, Ore.
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The single-story, cross-dock facility has 8,000 amps of electrical service, 40-foot clear heights, 650 feet of building depth, 348 trailer parking stalls, 427 auto parking stalls and 219 dock doors.
There’s enough connected land to accommodate 475 additional trailer stalls, a yard area or 225,000 square feet of additional building space. Cara Nolan of CBRE Portland and Andrew Stark of CBRE Seattle handle the marketing and leasing efforts at the property.
“Portland has seen industrial development migrate further north and south along I-5 as developable property has become increasingly hard to find or problematic to develop,” Tyler Sheils, SIOR, senior managing director – Logistics and Industrial at JLL, told Commercial Property Executive.
He added the region has also seen an increase in tenant requirements or owner/user build-to-suits of more than 500,000 square feet over the last 10 or so years.
Low supply for large industrial spaces
In 2024, the wider Portland metro area saw three occupiers commit to spaces of more than 500,000 square feet.
“The Mid I-5 Industrial Park is the only project that could accommodate a 500,000-square-foot tenant in a modern Class A facility that is currently available,” Sheils said. “There is one additional project under construction that will deliver in 2025. Users of this size will have very few options to consider.”
Despite Portland experiencing negative absorption in 2024, direct rents continued to climb largely due to new construction, according to JLL research. They increased modestly in the third quarter to reach $0.87 per square foot on the shell, marking a 3.6 percent year-over-year increase.
After the market saw new sublease space increase by 80 basis points over the past two quarters, JLL reported that sublease availabilities have slowed substantially, adding a marginal 16,000 square feet in Q4.
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