VOL. 132 | NO. 236 | Wednesday, November 29, 2017
Collierville Industrial Market Poised for I-269 Benefits
By Patrick Lantrip
The town of Collierville already has a solid, pro-business reputation, especially in the industrial real estate community, but as the completion of the outer Interstate 269 loop draws near, Collierville and its reputation are poised for even more growth.
Due to its geographic location, Collierville is projected to be one of the big winners of the outer beltway around the Memphis metro. I-296 is to wrap up construction by the third quarter of 2018 and has the potential to unlock hundreds of acres of developable industrial real estate in and around Collierville.
“One of the cool things about the I-69 system, which runs from Port Huron, Michigan, all the way down to Brownsville, Texas, and cuts right through the middle of the United States, is that Collierville is at the geographic midpoint of the I-69 system,” said John Duncan, director of economic development for Collierville. “So we certainly anticipate industrial and advanced manufacturing businesses to place themselves there.”
Interstate 269 (Map data ©2017 Google)
Duncan said that when you look at a map of the I-69 system, a large percentage of the U.S. economy is located along the corridor it forms, including Detroit, Chicago, Indianapolis, Nashville, St. Louis, Dallas-Fort Worth and Houston.
“We feel like organizations and companies will want to take an advantage of that by being located here and we certainly would welcome those types of opportunities for sure,” Duncan said.
Along on the southeast side of Collierville alone, there are more than 300 acres of developable land currently zoned industrial near the State Route 385/I-269/U.S. 72 triangle, Duncan said, and that will attract advanced manufacturing, pharmaceutical and electronics-type businesses looking to take advantage of the enhanced interstate access.
“We feel like our future as a corporate community is pretty bright, because we have the access, the infrastructure, the workforce, the amenities and the land those types of organizations are looking for,” Duncan said. “Plus, Collierville is a community that is safe and secure, which makes it a great place for companies to recruit from and retain their employees.”
Another selling point in terms for corporate recruitment, Duncan added, is that completion of Collierville’s new $93 million high school will be wrapping up around the same time as the I-269 project.
As for what size projects will most likely materialize in the wake of 1-269, Tony Argiro, vice president of industrial & logistics at CBRE, said potential users will typically be smaller than those moving in across the state line in Mississippi.
“You’re going to see smaller buildings, around 100,000 to 200,000 square feet, that are going to take advantage of being on the fringe of Collierville and having that access,” Argiro said.
Since there currently is a shortage of that type of product in the Memphis area, smaller companies are increasingly shopping in the peripheries of the MSA to meet their needs.
As an example, Argiro cited two smaller buildings in the 150,000- to 200,000-square-foot range that Hillwood developed in the Hacks Cross Logistics Center earlier this year. Both were completely leased before construction was even completed, he said.
In terms of workforce, Argiro added that the outer I-269 loop will also open up access to workers in areas of northeastern Shelby County like Lakeland and Arlington.
“If you look at the history of the town of Collierville, it has been a proven industrial market for a long time,” Argiro said. “This is just a modern progression of the industrial market in Collierville and Collierville’s willingness to embrace industrial.”