Marcus & Millichap Facilitates $42M Industrial Land Sale in Northern Virginia’s Data Center Corridor
Event summary
- Marcus & Millichap closed a $42M sale of two adjacent industrial properties in Manassas, Virginia, totaling 14 acres.
- The properties include a 135,000-square-foot industrial complex and an 18,000-square-foot warehouse, both with data center redevelopment potential.
- The transaction was notable for the strategic assemblage of the two parcels, enhancing long-term redevelopment opportunities.
- Northern Virginia’s data center corridor is characterized by land scarcity and rising rents, with current industrial vacancy at approximately 2%.
- The sale was facilitated by Marcus & Millichap’s Robert Filey, Haris Hanifi, Adrian Mendoza, and Brian Hosey.
The big picture
The $42M sale underscores the convergence of industrial real estate, power availability, and long-term data center demand in Northern Virginia. As the largest and most active data center market globally, the region’s land scarcity and infrastructure sensitivity continue to drive significant interest from investors. Marcus & Millichap’s role in facilitating this transaction highlights the firm’s expertise in navigating the complexities of high-demand industrial land markets.
What we're watching
- Land Scarcity
- How the increasing scarcity of industrial-zoned land in Northern Virginia will affect future data center development and property values.
- Redevelopment Potential
- Whether the strategic assemblage of adjacent parcels will become a more common strategy in high-demand data center markets.
- Market Dynamics
- The pace at which rising rents and competition in Northern Virginia’s industrial sector will impact investment strategies.
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