(To read more on the industrial market, click here.)

DULLES, VA-ProLogis is beginning the second phase of development at ProLogis Park Gateway, a 50-acre industrial park near Washington Dulles International Airport. The Denver-based firm plans to build 399,000 sf of additional light industrial and distribution space at the park, which is located on Route 606 and Pacific Boulevard. A total of five buildings will be built in Phase II, with the first three scheduled for completion in August 2006.

Mark Levy, vice president and market officer for ProLogis, tells GlobeSt.com that it has sold one 65,000-sf building to Federal Bakers, which services Starbucks. ProLogis plans to lease the other two buildings under construction.

Once those two buildings are substantially leased, Levy says, ProLogis will build the remaining two buildings that are to be part of Phase II. “We already have the building permits for those buildings. We anticipate we will be able to start by the end of the year.”

Three more buildings will be built during Phase III, which is expected to begin in late 2007 to early 2008. The buildings range in size from 65,000 sf to 96,000 sf.Phase I, which totaled some 160,000 sf, was completed in 2005. It is now more than 75% leased.

The Dulles Airport’s vacancy rates are at less than 6%, Levy says. Rents in the industrial park are averaging $830 triple net and $5 tenant improvement, which is consistent with the rest of the region, Levy says. “We are seeing a range from $775 without a TI allowance to roughly $8.30 with the allowance.” Current ProLogis customers at the park include the Airline Pilots Association, the Washington Post Co., Corporate Express Office Products, Nippon Express and Sears Logistics Services.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.