Subaru signs 550,000-sf lease at Majestic Commercenter

Subaru of America inked a long-term, 550,000-square-foot lease at Majestic Commercenter – driven to the park’s amenities and ability to expand to a larger location.

The carmaker signed the lease for the build-to-suit property at Majestic Realty Co.’s 1,600-acre master-planned park at the northeast quadrant of the intersection of Interstate 70 and Tower Road, continuing east to E-470.

Subaru will relocate from a smaller, existing location less than 2 miles away and expand into the new regional office, parts distribution and technical training center for its retail service technicians.

“This was a decision driven by a number of key factors for the long-term growth and success of our business and our employees,” Keith Metzger, director of corporate real estate with Subaru, said in a release. “We achieved a competitive lease rate for a prime location and quality product from a first-class developer that we have built a strong relationship with. In addition, the park amenities and surrounding area met or exceeded our checklist in every way.”

Cushman & Wakefield’s Steve Hager represented Subaru in the lease for the building, for which design currently is being completed. Groundbreaking on Building #16 is slated for late this year with completion of Subaru’s full build-out and occupancy late next year.

Commerce Construction LP is constructing Subaru’s building, which will feature 36-foot ceiling clearance, 70-foot speed bays, 115 dock doors and “significant” signage along the I-70 frontage.

“This announcement once again shows the significant value Aurora and Adams County have to offer companies looking for a home,” Aurora Mayor Mike Coffman said in a statement.“Seeing Subaru grow, especially while we are experiencing the challenges of the pandemic, is a positive sign that our economy is still resilient. This is an example of why economic development is so important – the city of Aurora will benefit from the tax revenue this project will generate, and the partnership with Subaru and their commitment to our community which will have long-reaching impact.”

Majestic Realty Co. also is underway on a retail project within the park at the East 32nd Parkway and Tower Road entrance. Up to 15 retail and hospitality tenants are planned for the 32-acre Majestic Tower Crossings, including at least one hotel. Additionally, it plans to connect the northern segment of the 71-mile High Line Canal with the planned First Creek Trail on the eastern side of Majestic Commercenter.

“The growth of this master planned park has evolved from a vision and foundation of Class A industrial product, but that is now being enhanced through the addition of our retail development and a connected outdoor environment,” said Majestic Realty Co. Vice President Michael Kapoor. “The mix of building and property functions for employers and employees is already making a difference in our park as evidenced from Subaru’s decision to call the Commercenter home.”

Recently, Amazon signed a long-term lease to occupy the 702,000-sf Building #15 at the park while Shamrock Foods purchased a site on the eastern edge of Majestic Commercenter, where work is underway on a 1.3-million-sf complex. With the completion of these projects and the Subaru facility, Majestic Commercenter will total more than 9 million sf.

Featured in the September 2-15, 2020, issue