Amazon, Sleep Number lease industrial spaces in Greater Cincinnati
A Greater Cincinnati industrial park has added two major tenants.
Amazon.com Inc. leased nearly 134,000 square feet of space in building 2 at Springdale Commerce Park, a multiphase speculative industrial development, according to documents filed with Hamilton County. Sleep Number Corp. signed a long-term lease for about 237,000 square feet in Springdale’s building 3. Together, the two companies have leased about 65% of the more than 577,000 square feet of space in first phase of the development at 1110 Strategic Parkway in Springdale.
John Cumming, senior vice president of development with Strategic Capital Partners LLC, said the first two leases will help the developers start on the next phase of development at Springdale Commerce Park.
“Having the leases done with good tenants is a catalyst to be able to fill the rest of the space in both buildings,” Cumming told me.
Indianapolis-based Strategic Capital Partners is developing Springdale Commerce Park with joint venture partner PCCP LLC. The first two buildings were completed at the end of 2020.
Amazon recently started operations in its space, after four months of tenant improvements to its space. Sleep Number’s space is being built out now and is expected to be ready for occupancy by the end of the year.
Both tenants selected Springdale Commerce Park because of its location at Princeton Park and Crescentville Road, with visibility and access to Interstates 275 and 75. The location also offers nearby amenities and a strong workforce.
Melanie Gangel, senior vice president with PCCP, said the leases are “testimony to the user demand in the Greater Cincinnati region that is seeking modern, industrial facilities that are strategically located near major logistic corridors and proximate to an abundant workforce.”
Jeff Bender and David Kelly with Cushman & Wakefield represented the landlord in both transactions. John Ferlita and Tim Schenke with CBRE represented Sleep Number and Hayes McWilliams with KBC Advisors represented Amazon.
Cumming said they have seen good leasing activity for the remaining spaces in the first phase. A little less than 133,000 square feet of space remains available in building 3, with 73,300 square feet of space left in building 2.
The developers are working on plans for phase 2 now, which would include a 180,000-square-foot building and a 375,000-square-foot building. The plan is to start this phase by the end of 2022.
A SCP/PCCP joint venture purchased the 135-acre property in 2018 to create the $43 million speculative development because the location is ideal for e-commerce and logistics. When finished, Springdale Commerce Park is expected to include four buildings totaling more than 1.1 million square feet of class A industrial space.
Amazon is the largest online retailer in the U.S. Sleep Number is an American manufacturer that makes the Sleep Number and Comfortaire beds, as well as foundations and bedding accessories.
Overall, Cumming said demand for space has been stronger in 2021 than 2020 and 2019.
“We’re trending in the right direction,” Cumming said.