By Margaret Jackson / NewsBreak Denver
(Aurora, Colo.) Dollar General is building a 919,000-square-foot distribution facility on 75 acres it acquired at the HighPoint Elevated industrial and logistics park in Aurora.
The project is the first build-to-suit at HighPoint Elevated, which broke ground last year and will include up to 5.5 million- square feet of industrial and logistics space at full buildout. Multiple deals are signed or under contract at the park.
The Dollar General building will anchor the east side of the HighPoint development and is already generating new leasing activity, said Paul Hyde, principal of Hyde Development, which is developing the park.
“The combination of labor, easy access to E-470 and the in-place infrastructure has attracted Dollar General and other users to this unique site,” Hyde said.
Dollar General announced the project as part of a three distribution center expansion in Arkansas, Colorado and Oregon. The company said it plans to invest $172 million in the Aurora facility, which will create around 400 new jobs at full capacity.
The expansion comes as inflation drives some shoppers toward more affordable options for their daily needs. Average spending on grocery products at discount chains increased 71% from last October to June, according to analytics firm InMarket.
“Tenants appreciate that HighPoint provides regional access to both labor and customers,” said Daniel Close, first vice president and CBRE who, along with Todd Witty, Tyler Carner, Jeremy Ballenger and Jessica Ostermick, represented Hyde in the sale. “HighPoint is one of only a handful of developments in metro Denver that can accommodate industrial needs from 20,000-square feet to a mega distribution facility. This is important as demand for industrial spaces nearing or surpassing 1 million-square feet has skyrocketed, spurred by rising e-commerce sales and a shift in retail inventory strategy.”
Last year was a record year for large warehouse transactions, according to CBRE research. Companies committed to 57 warehouse leases of 1 million-square feet or larger in the U.S. — a 19% increase from 2020.
HighPoint Elevated is at the southeast corner of East 64th Avenue and E-470, six minutes from Denver International Airport.
Building 1, a 542,000-square-foot speculative building that’s 37 leased, is under construction and scheduled to be completed this summer.