11 HARTFORDBUSINESS.COM | APRIL 19, 2021 | LOGISTICS & DISTRIBUTIONS
While each tenant has its individual needs — some may need cold
storage while others need structural columns spaced at a particular
distance, for example — Madrigal said buildings can be speculatively
built without a lease and successfully filled based on how well the
developer knows the market.
"In general, the main intention of a spec building is really driven by the
market," he said. "We're trying to cast the net as wide as we can. We
tend to make it kind of generic if we can. That's going to be a larger
space with trailer parking and a higher clear height."
Last year, his company filled a 182,000-square-foot distribution center
built on spec in South Windsor with an undisclosed Fortune 500
company. And Amazon expanded its Connecticut footprint when it
signed on to occupy the 403,000-square-foot fulfillment center Scannell
built on spec in Cromwell, which Madrigal said was the largest spec
build in the state.
He said oftentimes tenants get onboard early enough in the process
that the project can be customized to meet their needs. Overall, tenants
working with a shorter timeline find spec builds appealing, because the
wheels of construction and permitting are already in motion.
"It really comes down to timing, whether it's a spec build or built-to-suit,"
he said. "Speculative is faster. It may not be customized to exactly what
they want, but it's offset by timing." After all, the quicker companies can
get into ideal industrial space, the quicker the speed with which they
can get their goods out to their target consumer markets.
This 403,000-square-foot property, at 120 County
Line Drive in Cromwell, is the largest speculative
development in the state, according to Scannell.
Amazon is setting up shop at the site, which is
less than two miles from Exit 23 on I-91.
"
"
"It really comes down to
timing, whether it's a spec
build or built-to-suit."
Daniel Madrigal,
Senior Development Manager at Indianapolis-
based Scannell Properties
