$35 million warehouse development being built in Blaine

A Canadian real estate development firm has broken ground on the first of three buildings that will make up a $35 million speculative industrial complex in Blaine.

Winnipeg-based Artis Real Estate Investment Trust (REIT) is constructing the three Class A buildings on vacant land in Blaine, just northwest of Interstate 35W and 85th Avenue/County Road J.

The three structures, called Blaine35, will have combined space of about 317,400 square feet.

Crews broke ground on the first building earlier this month. When finished, it will have 32-foot ceilings and 118,500 square feet.

Last month, the Blaine City Council approved roughly $2.7 million in tax increment financing to help the project move forward.

Commercial real estate services firm CBRE has been hired to market the property, which is the latest in a number of speculative industrial building projects to hit in the Twin Cities in recent months.

While the pandemic has disrupted the U.S. office market, demand has skyrocketed for product warehouses, distribution hubs and logistical sorting centers because of the swell of online shopping and home delivery.

“We continue to see elevated levels of industrial demand in the market,” said CBRE Senior Vice President Dan Swartz. “Speculative developments like Blaine35 allow Minneapolis [and its suburbs] to attract more industrial users that need to expand quickly to respond to unprecedented demand.”

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