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Construction underway on first building in new Grimes industrial park


Construction is underway on a 270,000-square-foot industrial building, the first project in the new Rider Logistics Center in Grimes. The development is a joint venture between Opus Group and ATI Group. Rendering by Opus Group



Construction began in late April on Rider Logistics Center, a multiphase speculative industrial development in Grimes.

The project, located at 3901 S.E. Park Drive, is a joint venture between Opus Group, headquartered in Minneapolis with offices in Clive and other U.S. cities, and ATI Group, a residential and commercial development company located in Ankeny.

“Rider Logistics Center will help address the continuing strong demand for industrial space in the Des Moines market,” Jason Conway, senior director of real estate development for Opus, said in a prepared statement.

Opus Group, through ODC ATI Grimes LLC, paid ATI Group $2.8 million for the 77 acres where the development will be located, Polk County real estate records show. The transaction was recorded May 3.

Rider Logistics Center is a 77-acre master-planned industrial park. The development’s first phase will include a 270,000-square-foot building with a 32-foot clear height, up to 56 dock doors, two drive-in doors and up to 242 vehicle parking stalls. The structure will be built on 16.5 acres.

Construction is expected to be completed in the first quarter of 2023.

Michael Anthony, project executive for Opus Group, said construction of industrial space is expanding beyond Ankeny and Des Moines, both of which have experienced strong warehouse development.

“With the increasing land prices and dwindling supply in Ankeny and the demand still extremely great, other areas around the metro will continue to see more development,” Anthony wrote in an email. “Our Grimes project is an example of this shift.”

Hubbell releases first-quarter industrial report

CBRE|Hubbell Commercial recently released its 2022 first-quarter industrial report. Highlights include:

• The vacancy rate for flexible space is 4%, warehouse and distribution space 2.5%, and manufacturing 2%.
• More than 3.1 million square feet of industrial space is under construction in the Des Moines area.
• Increases in land and construction costs are pushing lease rates higher. In the fourth quarter of 2021, warehouse and distribution space leased for an average of $5.43 a square foot. In the first quarter of 2022, the average lease rate is $5.71, a 5% increase.

Read the report.


Related article: Construction began on 1.2M square feet of industrial space in the first quarter in Des Moines

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