$303M Build-to-Suit Deal for Fortune 20 Tenant Boosts Broadstone’s Pipeline
Event summary
- $303M build-to-suit project in Colorado for Fortune 20 tenant.
- 15-year triple-net lease with 3% annual rent escalations.
- 8.5% year-one cash yield, 9.7% year-two, and 11.6% straight-line yield.
- Project expected to stabilize by March 2027.
- Tenant becomes Broadstone’s largest upon rent commencement.
The big picture
This deal underscores Broadstone’s shift toward high-yield, long-term development projects in the industrial sector. The Fortune 20 tenant’s commitment reflects growing demand for customized real estate solutions among large corporations. With $303M invested, this transaction is a significant bet on Colorado’s tech ecosystem and could set a precedent for future build-to-suit ventures.
What we're watching
- Tenant Concentration Risk
- How the addition of a single large tenant will affect Broadstone’s portfolio diversification.
- Development Execution
- Whether Broadstone can deliver the project on time and within budget, given the scale and complexity.
- Yield Sustainability
- The pace at which yields may compress as more institutional capital flows into build-to-suit developments.
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