One of the nation’s largest industrial real estate developers lined up a pair of sites near the Port of Virginia to develop nearly 1 million square feet for Unis in a deal that highlights the draw of one of the fastest-growing ports in the United States and earned the deal a 2023 CoStar Impact Award for lease of the year in Hampton Roads, Virginia, as judged by a panel of local industry professionals.
Industrial Realty Group of Los Angeles is expected to break ground this spring on the two build-to-suit facilities in Hampton Roads. The development will include a 910,000-square-foot, high-volume, cross-dock terminal in Suffolk, and a 72,000-square-foot transload facility in Portsmouth.
A Southern California-based third-party fulfillment and transportation company, Unis' new facilities will give the company a sizable foothold in a market that has seen its industrial sector explode as demand around the Port of Virginia has intensified. The expansive state-owned facility and one of the largest container ports on the East Coast moves cargo to and from more than 200 countries and has helped establish the area as a prime launch point for businesses to import, export and distribute products. Industrial vacancies hovered near all-time lows in Hampton Roads entering 2023, at 2.3%, and leasing activity has just started to come down from the all-time highs registered in each of the past two years.
With the lease, Unis is now set to have a presence in each of the top 10 U.S. ports. The company currently operates about 12 million square feet of fulfillment space in 16 markets across the U.S.
About the project: Unis' 910,000-square-foot cross-dock facility is set to be developed at 271 Benton Road in Suffolk, while the company's 72,000-square-foot transload facility will be located at 1 Wild Duck Lane in Portsmouth.
What the judges said: "I felt the Unis transaction was the most impactful offering a pair of developments near the Port of Virginia, the fastest growing port in the U.S., offering much need high-volume cross-dock facilities," said John Duffy, a vice president with Cushman & Wakefield | Thalhimer.
"The planned development of the two components, a cross-dock and a transload facility, both of which are currently in short supply in Hampton Roads, augment Port Authorities capital projects currently underway," said Michael Divaris, president and CEO of Divaris Real Estate.
They made it happen: Charles L. Dickinson, SIOR of Harvey Lindsay Commercial Real Estate represented Industrial Realty Group in this transaction, while Jessica Chen of Kander Pacific represented Unis.