A more than century-old, Minneapolis-based real estate company has proposed construction of a pair of industrial buildings that would total nearly 300,000 square feet, which would mark one of the first significant projects in the 260-acre Reagan Ranch residential and commercial development on Colorado Springs’ east side.
United Properties, which also has offices in Denver and Austin, Texas, has submitted plans to city government officials showing it intends to develop buildings of 155,895 and 138,247 square feet on 21 acres northwest of Marksheffel Road and Space Village Avenue.
The buildings are envisioned as speculative projects — to be constructed for tenants who will come along at a later time. Those tenants are expected to be light industrial, warehouse and office users, United said in its proposal to the city.
United was attracted to Colorado Springs, in part, because of a strong demand for industrial space and a lack of available industrial product, said Mindy Rietz, the company’s vice president of development in Colorado. The Springs’ industrial vacancy rate is just 3.3%, which is well below the level needed to serve industrial users, Rietz said, citing a figure from national real estate company CBRE.
“The market is very tight for industrial space,” she said.
Colorado Springs also has shown strong population growth and an increasingly diverse economy, Rietz added.
“As I understand it, most of the newly developed space similar to what we have proposed is already fully leased or is close to being fully leased,” she said.
Reagan Ranch is taking shape near U.S. 24, Colorado 94 and Marksheffel Road and includes 60 acres for commercial development and 36 acres for industrial uses.
United’s 21-acre site at Reagan Ranch will link to the area’s roadways and allow industrial users to connect to Interstate 25, which is a critical corridor for its truck traffic, Rietz said.
The area also is part of a strong industrial submarket, she said. The nearby Powers Boulevard corridor is home to dozens of industrial and office users, warehouses and distribution facilities and provides quick access to the Colorado Springs Airport and its Peak Innovation Park business park, as well as Peterson Space Force Base.
While industrial spaces of 10,000 square feet and less have been in demand in Colorado Springs, United’s larger buildings can be designed to accommodate multiple users in smaller spaces, Rietz said.
It’s too early, however, to know the mix of tenants the buildings might have, she said. Likewise, Rietz said, the buildings themselves are preliminary in design and details about the project could change.
United still must clear city government regulatory hurdles before the project goes forward, she said. The company has contracted to buy the property, though Rietz declined to say when the purchase is scheduled to be completed.
In a best-case scenario, United hopes to have the buildings delivered to users by mid to late 2025, she said.
The industrial project won’t be the first for United in Colorado Springs.
In 2005, the company purchased the old Shops at the Bluffs/Mall of the Bluffs, a shopping center at Austin Bluffs Parkway and Academy Boulevard. United razed much of the retail center, rebuilt it and rebranded the property as the Marketplace at Austin Bluffs. The company sold it in 2011.
Founded in 1916, United develops and invests in commercial property, senior housing and residential real estate in Minnesota, Colorado and Texas, its website shows. The privately owned company is controlled by the billionaire Pohlad family, whose many businesses include the Minnesota Twins baseball team, according to an online profile by Forbes magazine.
United’s planned industrial project showcases Reagan Ranch’s potential for other industrial, office and commercial users, said Danny Mientka, who heads The Equity Group of Colorado Springs that’s developing the property.
In addition to Reagan Ranch’s 96 acres for industrial and commercial uses, the development is expected to have a mix of 1,450 single-family homes, townhomes, apartments and accessory dwelling units, he said.
“It (United’s project) anchors what we envision to be sort of a mixed-use industrial, commercial, perhaps a bit of research and development type of business park,” Mientka said. “This sort of anchors it on the west. This is attractive, Class A, logistics warehouse space. It typically would lead office development, and the commercial, of course, will follow the rooftops. But I find it to be very important to getting Reagan Ranch out of the ground.”
The Equity Group has invested in significant utility upgrades for the Reagan Ranch area and now is in a position to sell off parcels, Mientka said. The decision by United Properties — a family owned company with a strong development track record — to locate at Reagan Ranch is a coup for the project, he added.
“They just legitimize the timing of the development and the transformations that have occurred with utility infrastructure and grading,” Mientka said. “This sort of kicks it off and lets the marketplace know that this area has development opportunities and potential.”
