EastGroup Going Spec
EastGroup Properties is going spec on Denver industrial. The company reported to the SEC this week that it plans to develop an 84k SF distribution building called Rampart IV at 9750 East Easter in Centennial. The company says the project will cost $8.3M and will deliver by April of next year. We spoke with EastGroup's Bill Petsas, who says "while we do not have a specific tenant in mind, we have had a fair amount of interest from companies looking to expand within the Southeast submarket." The company currently owns some 420k SF in six buildings in Denver (including Rampart III here), but only one of those has vacant space. (Which is a quiet way of saying they have a lot of friends.) "We are at a point in the cycle where development makes sense for us. It allows us to get a new, state-of-the-art building at a better yield than we can obtain by acquiring an existing building."
