Buildings in the Port Union at Union Centre in West Chester can serve a wide swath of the US. Buildings in the Port Union at Union Centre in West Chester can serve a wide swath of the US.

CINCINNATI—This metro area has become one of the hottest industrial markets in the nation, and throughout 2015 a host of developers have been hunting for spaces. And Becknell Industrial, a privately-held national firm that specializes in the development, management and long-term ownership of industrial properties, just became the latest to purchase land here for development. The company bought 9.1 acres located at the corner of Union Centre Blvd. and LeSaint Dr. in suburban West Chester from IDI Gazeley. CBRE Group, Inc. facilitated the sale.

The land is a part of Port Union at Union Centre, a master-planned park along Union Center Blvd. Becknell officials say they will develop a 138,750-square-foot spec building on the site, but will also consider a build-to-suit. They expect to begin construction in spring 2016.

“We are a big fan of the Greater Cincinnati industrial market as evidenced by our recent acquisitions in Forest Park and Lebanon,” says Pete Anderson, executive vice president, investments, at Becknell. “This new land acquisition in West Chester and our planned subsequent speculative development is all based around the strong fundamentals of low supply and increased demand in a very mature submarket.”

The vacancy rate among class A bulk warehouse properties sank to just 1.3% in the second quarter of 2015, according to a recent report from Cushman & Wakefield. And even after developers delivered an additional 2 million square feet of bulk warehouse space, class A bulk vacancy rose to a still-low 5.1%. Overall industrial vacancy also remained low, just 4.59%, at the end of the fourth quarter. “Overall vacancy shows no sign of major change, and will remain below 5% for the next 12 months,” C&W says. “While significant deliveries of bulk distribution space took place in 2015, a number of new speculative projects will break ground in early-to-mid 2016.”

CBRE’s Jeremy Kraus, vice president, represented the seller. CBRE will also market the property for Becknell.

“We are excited about working with Becknell on this project,” CBRE’s Kraus said. “As the market has tightened, tenants who are seeking high-quality space in this size range haven’t had many good options. Becknell’s future site at Port Union will help give tenants more options.”