GRETNA, Nebraska — It is anticipated that approximately 170 acres of unused farmland located next to the Nebraska Crossing outlets will be transformed into the largest continuous industrial park in the Omaha metropolitan area.
The property’s developer, NewStreet Properties, is optimistic that the project would, in the long run, bring in investments totaling up to $190 million.
The Gretna Logistics Park, as the location is known, is going to have its start with the construction of a warehouse that is 400,000 square feet in size. This building is going to be constructed on spec, which means that tenants have not yet been found for it.
Initial concepts propose for the construction of a second structure with a potential floor area of up to 300,000 square feet and a workforce of up to 200 people. Although the identity of that employer is known, NewStreet has chosen not to reveal it at this time since the sale of 25 acres of land for the assembly and manufacturing plant is still being finalized.
According to Peter Frei, vice president of investments for NewStreet, the company that bought the land in Sarpy County last year south of Interstate 80 off the Nebraska Crossing exit between Omaha and Lincoln, the larger development site could fit approximately 2 million square feet of industrial and warehouse building space for uses such as manufacturing and distribution. This information was provided by Peter Frei.
Frei believes that the demand for industrial projects in the region would build up during the next five to ten years, and the Gretna project is a symbol of the sustained high demand for such projects. He stated that NewStreet desires to be prepared for when prospective tenants contact in order to avoid the possibility of losing another company to another location that offers more move-in ready properties of that size.
According to him, “we expect the tailwinds that the industrial sector has been experiencing, and that have been exacerbated by COVID, will continue.” COVID has been a factor that has made the market’s positive momentum even stronger.
“A great deal of filth,”
Soon, construction will commence on the first speculative warehouse, and it is anticipated that the building will be finished by the end of 2023. NewStreet is so certain that one or more users will sign up for their services that they have begun building despite not having a lease agreement in place.
Frei stated that there is a lack of large production and distribution spaces in the Omaha area, and that acceptable tracts of land on which to develop them are also becoming scarcer. Additionally, Frei stated that there is a paucity of suitable tracts of land on which to build them.
In point of fact, the most of the newer and larger industrial space has been developed along or near Highways 50 and 370, which are located closer to Papillion, which is located in Sarpy County. However, according to Frei, that expanding area has grown busier as a result of more traffic and housing in the surrounding area. This is one of the reasons why NewStreet began exploring for a construction location near a different Interstate interchange.
His group located and purchased the mountainous farmland of 170 acres that was located next to the open-air Nebraska Crossing mall. According to him, the land preparation was a significant undertaking, and it took around one million cubic yards of earth to be moved around in order to level the region.
“That’s a lot of dirt,” he remarked as he looked at it.
By the middle of the year 2023, all of the streets and utilities are scheduled to be installed. A sanitary improvement district was established by the developer in order to assist in the funding of public works.
The development of the park is going to take place in two stages. The requisite platting has been given the go light by the City of Gretna. The first structure is going to have a height clearance of 36 feet, and it’s going to include a feature called cross docking, which is going to improve the speed, flow, and efficiency of dealing with particular inventory.
There is a blurring of boundaries.
The listing agent for the site is Dennis Sciscoe, an industrial broker with Cushman & Wakefield/Lund Co. He stated that the projected structure, which will be 400,000 square feet in size, will be the region’s largest industrial-use property that will be erected on a speculative basis.
According to Sciscoe, the Gretna project will be the largest continuous industrial park in the Omaha metropolitan area once all park phases have been completed.
He stated, “The borders of industrial development are pushing outward, which is a good sign that our market is expanding.” This is a positive sign that our market is increasing.
In addition, the metropolitan area is home to the development of a number of other industrial parks. R&R Realty of West Des Moines, for example, has been building a massive development in Sarpy County near Highways 370 and 50 that rivals the overall size envisioned at Gretna. Despite the fact that the R&R property is split up and not contiguous, the R&R development is larger than what is planned for Gretna.
White Lotus, a real estate development company based in Omaha, plans to construct approximately one million square feet of warehouse and industrial space on 71 acres located near Lincoln. In addition, White Lotus is in the process of developing the 138-acre I-80 Logistics Hub in Sarpy County, which will be located at 132nd Street and Cornhusker Road.
Amazon, United Parcel Service, Home Depot, GXO Logistics, and Scooters are some of the tenants that are currently using space at I-80 Logistics.
In Council Bluffs, the Opus Group intends to develop approximately 550,000 square feet, and according to Sciscoe, they have already leased a sizeable portion of that space to Packaging Corp. of America.
According to Frei, the Omaha-Lincoln area provides a desirable location in the middle of America and simple access points to many modes of transportation. However, he stated that he is aware of prospective customers who have shown interest in the local area but ultimately decided to look elsewhere because there is a dearth of readily available huge spaces, particularly in the range of 300,000 to 700,000 square feet. Frei stated that the NewStreet initiative’s goal is to make substantial industrial spaces available to companies that are looking for a relatively rapid ramp-up for the launch of a new project.
Frei stated that there are users in the world who are looking for a safe haven. We are putting ourselves in a position to flourish in tandem with these favorable breezes.