Brennan Group, John M. Corcoran, and Berkeley Partners JV Breaks Ground on Industrial FacilityApril 04, 2022
LUNENBURG — The Brennan Group, John M. Corcoran & Company, and equity partner Berkeley Partners have broken ground and construction is underway on Lunenburg Central, a 372,000 square-foot, Class A High Bay warehouse/distribution facility. Located at 475 Leominster Shirley Road in Lunenburg, MA, Lunenburg Central is located in the heart of the Route 2 Industrial Corridor in Central Mass. that includes Devens, Littleton, Leominster and Ayer. Lunenburg Central offers quick access to major distribution roadways – three minutes from Route 2, five minutes from I-190 and 11 minutes from I-495 – just 25 miles to Worcester and 43 miles to Boston. Site work commenced in February and the facility is scheduled to be delivered in Q1 2023.
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% in the Greater Boston market at the close of 2021, with vacancies for warehouse/distribution facilities at 2.4% due to increased ecommerce activity. Industrial asking rents rose to $12.27 per square foot NNN in 2021, a 9.7% 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’ clear height, 71 loading docks and 2 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.