Two developers are proposing three distribution centers totaling nearly 1.8 million square feet near Interstate 395 in Killingly. Photo by Steve Adams | Commercial Record Staff
Developers are eyeing vast parcels off Interstate 395 in northeastern Connecticut to accommodate rebounding demand for distribution and warehouse space.
The Quiet Corner’s proximity to major highway networks is sparking unprecedented interest in undeveloped acreage, including three proposals in the town of Killingly alone for nearly 1.8 million square feet of distribution space.
“These large facilities need lots of land,” said Nicholas Morizio, president of the Hartford and New Haven region for brokerage Colliers. “The only places [in Connecticut] that have lots of land and utilities and highway access is eastern Connecticut.”
Opportunities for major distribution developments are expanding as Amazon and large corporate users renew their expansion plans after a boom-and-bust cycle in the years following the pandemic.
Across the U.S., industrial real estate net absorption soared to nearly 600 million square feet in 2021, according to Colliers research, before declining to 175 million square feet in 2025. Construction activity fell to 272 million square feet in 2025, the lowest level since 2017.
But there are now signs that tenant demand is rebounding, with Amazon increasing its requirements for warehouse space across the U.S. for up to 51 million square feet this year, including expansion of its rural delivery network.
In the central Connecticut industrial market, leasing activity shot up nearly 47 percent to 2.5 million square feet in 2025, according to a Cushman & Wakefield research report. Nearly three-quarters of transactions took place in the Hartford County submarket.
Residents Want Halt on New Projects
Officials in Killingly, a largely rural town of just under 18,000, are reviewing plans for three warehouse and distribution developments on two separate properties.
The largest, located off Interstate 395 at Westcott and Mashentuck roads, would be developed with a 1.37 million-square-foot warehouse. Known as “Project Husky” in application materials, the 340-acre site is located in a business park zoning district, where warehouse and distribution centers are allowed uses.
The developer, Ryan Companies of Minneapolis, invests in a wide range of property types and provides construction, development and real estate management services.
The second, proposed on a 60-acre parcel at 90 Putnam Park, would be developed as two distribution facilities totaling 476,250 square feet. According to property records, the property was acquired in September 2025 for $600,000 by Killingly 1 LLC, which lists Rhode Island developer Domenic Carpionato as principal.
The proposals have prompted public opposition, including calls for a moratorium on large distribution centers, The Day newspaper reported. The Killingly Planning & Zoning Commission, which is responsible for a site plan review of the projects, has hired a law firm to conduct a third-party review of both projects.
A Rhode Island developer proposes a pair of distribution centers totaling 467,250 square feet at 90 Putnam Park in Killingly. Image courtesy of Solli Engineering
Occum Industrial Park Seeks Connection
A potential buyer is in talks with a Norwich economic development agency for 92 acres in a planned new industrial park off Interstate 395.
The potential acquisition is located within the Occum Industrial Park. The Norwich Community Development Corp., owner of the 384-acre property, is seeking additional funding from the U.S. Department of Transportation to pay for a new 5,500-foot access road providing a direct connection from southbound Interstate 395.
In a letter submitted to Transportation Secretary Sean Duffy, NCDC Executive Director Kevin Brown indicated a large corporate tenant is interested in building a logistics hub on the property, The Day reported last month. NCDC has potential occupants for five of 10 parcels within the park, Brown’s letter stated.
Brown did not respond to a request for comment.
A short distance north at 99 River Road in Lisbon, Colliers is marketing an industrial development site for $8 million. The 60-acre site is capable of accommodating a 500,000-square-foot industrial facility, according to a marketing flier.
The project could accommodate 825 vehicle spaces and 96 trailer parking spots, along with 48 loading docks, Colliers stated.
The property is located within the state’s East Enterprise Corridor Zone, which stretches through eight towns along Interstate 395. Qualified industrial and logistics projects that involve new construction, expansion or significant capital improvements receive 80 percent abatements on real estate and personal property taxes for up to five years.
Participants in the program, administered by the Connecticut Department of Economic and Community Development, also receive a 25 percent corporate business tax credit for up to 10 years.
