The Southern Nevada industrial market has continuously seen improvement through the second quarter of 2015 with a positive absorption of 878,151 square feet. The overall vacancy rate followed suit and decreased to 8 percent – down 2.1 points from the 12 previous months, which ended at 10.1 percent. The asking lease rates also increased to an average of $6.38 – up almost 10 percent in the fourth quarter of 2014 when it stood at $6.16. A new addition to the healthy market is the growth in new projects that are either planned or under construction. There is an estimated 2.4 million square feet currently under construction, with deliveries anticipated from the third quarter of 2015 through the second quarter of 2016. Big box distribution demand continues to climb, and most developers now believe “if you build it, they will come.” One of the largest deliveries planned for the third quarter of this year is Prologis’ 3700 Bay Lake Trail. Bay Lake was originally planned as a 464,203-square-foot, speculative project. The entire development was leased by Cushman & Wakefield to the Global Equipment Company (GEC), a subsidiary of Systemax, prior to the official groundbreaking, however. This deal was an expansion for …
ROMEOVILLE, ILL. — Meridian Design Build has completed a 70,411-square-foot expansion to a 238,643-square-foot sorting and distribution center in Romeoville. The expansion increases the capacity of the facility with the addition of 95 interior van loading positions, 185 auto parking stalls, 69 trailer stalls and 3,442 square feet of office space. Site improvements include the construction of a 1,600-linear-foot retaining wall to facilitate expansion of the trailer area. Precept Design LLC served as project architect and Jacob & Hefner Associates provided civil engineering services for the project. Meridian constructed the original facility on a design-build basis in 2012 for Indianapolis-based Scannell Properties.
SPARTANBURG, S.C. — Binswanger has arranged a 101,959-square-foot industrial lease at 700 Buffington Road in Spartanburg. The warehouse facility fronts the I-85 Business Loop and features 31-foot clear heights, four tailgate loading docks and T-5 fluorescent lighting. The owner, Covington Group Inc., is planning to add office space, restrooms and more dock doors, as well as install an ESFR sprinkler system. Shaun Kirchin of Binswanger’s Columbia, S.C., office represented Covington Group in the lease transaction. The tenant, Kimura Inc., a supplier of steel containers and racks, plans to use the space to provide third-party logistics services for one of its customers.
SOMERSET, N.J. — Binswanger has arranged the long-term lease of 82,181 square feet of distribution space in Somerset for Iberia Foods of New York. The company plans to use the facility at 95 Clyde Road to support the more than 10,000 supermarkets, club stores, wholesalers and distributors on the East Coast that the company serves. Constructed in 1980, the property features 24-foot clear ceiling heights, a wet sprinkler system, T-8 lighting, eight dock-high doors, one drive-in door and parking for 100 vehicles. Andy Grabis and Jim Panczykowski of Binswanger represented the tenant in the transaction. The landlord is Cabot II-NJ M01 LLC.
LOS ANGELES — The LA Opera has leased a 27,500-square-foot industrial/flex building in downtown Los Angeles. The opera production organization will use the space as a costume design shop. It is located at 1655 E. 14th St. The company will relocate from the nearby Arts District. The 10-year lease is valued at $4.6 million. Chris Steck, Chris Giordano and John Anthony of Charles Dunn Company represented LA Opera. Major Properties represented the landlord, Danjon Realty.
E-commerce and business-to-consumer companies could overtake the automotive industry when it comes to driving growth in Kansas City’s modern bulk distribution segment of the industrial market. Auto suppliers filled the first wave of new space in the Kansas City industrial market. But now that those needs have primarily been met, new industry sectors are needed to fill the second wave of development. E-commerce and business-to-consumer companies could be the dominant users. These companies are capitalizing on the fact that 85 percent of the U.S. population can be reached from Kansas City in a two-day truck drive, according to KC Smart Port, a nonprofit organization that works to attract freight-based companies to the Kansas City area. Through in-house transportation studies, KC Smart Port is coming to the conclusion that it strategically makes sense for the distribution centers of e-commerce companies to be located in Kansas City. Recommendations from UPS, FedEx and third-party consultants also help e-commerce companies — located on both the East and West coasts — make that decision. Business-to-consumer companies operating a one-, three- or five-building model find that Kansas City works well logistically as it is in the middle of the country. Inherent Advantages Locating in Kansas City allows …
FORKS TOWNSHIP, PA. — Dermody Properties and PCCP have partnered to develop a 475,800-square-foot industrial facility at 4200 E. Braden Blvd. in Forks Township in Lehigh Valley.Construction is slated to begin in fourth quarter, with completion scheduled for mid-2016. LogistiCenter at 33 will feature 36-foot clear heights, 226 car parking spaces and 85 trailer parking spaces. The facility is ideally suited for warehouse, distribution and manufacturing operations. Dermody Properties is the industrial developer and operating partner, and PCCP is the financial partner for the project.
SAN ANTONIO — Stream Realty Partners has secured a 14,700-square-foot industrial lease at Interwest Business Park in northwest San Antonio. The 218,219-square-foot industrial facility is located at 6800 Alamo Downs Parkway at Loop 410 and Culebra Road. Jason Schnittger and Kevin Cosgrove of Stream Realty Partners represented the landlord, G&I VII Interwest Business LP, in the transaction. Joe Caroll of Cavender & Hill Properties Inc. represented the tenant, O’Hagin LLC, in the transaction.
FORT WAYNE, IND. — Bradley Co. has arranged two leases and one condominium sale across various property types in Fort Wayne. Kienan O’Rourke of Bradley Co. represented the tenant, Vintage Treasures LLC, in the lease of 21,600 square feet of retail space located at 265 Coliseum Blvd. In a separate transaction, O’Rourke represented the seller, B&R Real Estate, in the sale of a 2,077-square-foot office condo located at 515-519 Airport North Office Park in Fort Wayne to an undisclosed buyer. In a third transaction, O’Rourke represented the landlord, Kurt Mundinger, in the lease of 7,108 square feet of industrial space located at 224 E. Wallace St. to Three Rivers Distilling Co. Kelly Castle, also of Bradley Co., represented the tenant in the transaction. Terms and additional details of the transactions were not released.
TAMPA, FLA. — A public-private partnership that includes Port Logistics Tampa Bay I Inc. and Port Tampa Bay will start construction on a 130,000-square-foot cold storage food products facility at Port Tampa Bay early next year. Set to open in November 2016, the $19.1 million intermodal facility will employ 50 full-time workers and up to 200 part-time workers. The Tampa Port Authority Board recently approved a 27-year lease to Port Logistics Tampa Bay I for the 13.7 acres where the facility will be developed on Hookers Point in downtown Tampa. The Tampa Port Authority has engaged Atlanta-based Batson-Cook Co. as contract manager for the project. The facility will accommodate 8,000 pallet positions in several different rooms with independent temperature controls for produce and perishables. The building will include office space for truckers and regulators such as USDA and Customs officials, and 15 temperature controlled doors for truck shipments. The project team includes George Livingston, principal of Port Logistics; Huie, an investment banker in Hong Kong; Seatrade; Time Definite Services; and Canton Port Services.