This article originally appeared in Denver Post, by Joe Rubino, July 31, 2021.
Photo credit of Westfield Co.
Pepsi finds perfectly placed commercial development
Pepsi has announced this week that it has signed a brand new lease for a 283,500 square-foot warehouse in the upcoming Pecos Logistics Park. Located at the northwest corner of West 56th Avenue and North Pecos Street, this commercial development project is planned to be built to spec for Pepsi. The development is being led by the Denver-based real estate firm Westfield Co. which altogether is planned to bring more than 1.15 million square feet of commercial space to unincorporated Adams County. The location is placed right between three major highways - I-70, I-25, and 76. The civil engineering development team was focused on creating a close-to-consumers, close-to-the highway property to attain maximum accessibility.
“PepsiCo Beverages North America has made a long-term commitment to our location and our park because they recognize the efficiency, functionality, and quality of what we will deliver at Pecos Logistics Park will play a critical role in their ability to continue to grow their operations and maintain a competitive advantage in Colorado.” Westfield vice president of industrial Matt Mitchell wrote in an email for the Denver Post.
Commercial Development Planned For Completion This Year
The new Pepsi building is expected to be done in September 2021. The development is part of the first phase of the park's construction which includes three other buildings. The three other commercial construction developments are being built on a speculative basis as no one has leased the proposed projects.
The new commercial development will not replace Pepsi's current warehouse which is located on the corner of 38th Street and Brighton Boulevard as one of their existing bottling plants. Pepsi last Summer sold two surface parking lots across from the bottling plant to a San Francisco multifamily developer for more than $26 million, a deal that was reported on by BusinessDen.
“For more than 65 years, (PepsiCo Beverages North America) has proudly served the Denver Metro market and we are so proud that we can enhance our operation in Colorado,” Shawn Early, senior market director for Pepsi North America’s west division, said in a news release. “This facility will allow us to better serve our employees, customers, and community while setting us up for long-term success in the future.”
Commercial Developments turn to warehouses
The Pecos Logistics Park is the latest major industrial project announced in Adams County just north of Denver. Industrial real estate development has been on a hot streak of interest here in Denver for the last 18 years before COVID19 struck. With the sudden shift in consumer behavior, developments are being pushed for more warehouses to supply demand on increased e-commerce sales.
“That shift to e-commerce is creating a demand for more warehouses close to consumers,” Carner of the CBRE said. “Clearly finding sites for industrial infill development is incredibly challenging and incredibly rare and that’s really what Pepsi realized here.”