Prologis has broken ground on its largest-ever industrial development in North America, a speculative scheme in California.
The company has started development of the Park of Commerce project in Tracy – the first speculative industrial building in the county in the last five years.
The Park of Commerce is projected to total 19m sqft (1.8m sqm).
The scheme, 64 miles from San Francisco International Airport, will be owned by Prologis with no investment from third-party investment management funds.
The scheme includes $200m (€160m) in infrastructure and development fees.
The first building to be constructed in the park will be a 1m sqft spec development due for completion next summer.
IP Real Estate understands the property is likely to be leased to a single tenant, with e-commerce businesses a target for the project.
Dan Letter, senior vice-president and investor officer at Prologis, said the company’s Central Valley portfolio was 100% leased.
“We see strong market demand for Class-A facilities,” Letter said.
“Tracy is the first stop in the Central Valley market, and, thanks to this partnership with the City of Tracy and San Joaquin County, we can offer industry-leading facilities designed to meet our customers’ requirements.”
Leases are due to be signed in the next 90 days, with two Fortune 500 companies for new facilities.
The unnamed companies are expected to bring 1,000 new jobs to the area.
The park could support around 36,000 new jobs on completion.
