MEMPHIS, TENN. — IDI has leased 358,663 square feet of warehouse space to two tenants in its Crossroads Distribution Center, brining the total space leased in the development to 958,806 square feet. Smiths Medical will combine its facilities in Southaven, Miss., and San Diego into 239,863 square feet in Building A. An undisclosed logistics provider will also sign a lease expansion for 118,800 square feet in Building F; the firm now occupies 622,904 square feet in the center.
Colliers Wilkinson Snowden’s Henry Stratton represented Smiths Medical; Brian Fogelberg CB Richard Ellis’ Minneapolis office and Jim Mercer of the firm’s Memphis office represented the logistics company. Tim Moore served as in-house representation for IDI.
With the leases, Building A sits at an occupancy rate of a little more than 50 percent and Building F boasts a 77 percent occupancy rate, according to Kurt Nelson of IDI. However, the two buildings are only a small portion of the Crossroads Distribution Center. The final goal is to bring a total of 7 million square feet of logistics space to an 475-acre area. Nelson says this space, however expansive, is perfect for Memphis, a market that prides itself on being the perfect area for logistics companies.
“Memphis is a great logistics hub, and it’s a great spot for folks that are looking for a single national distribution center,” he says, listing the city’s five major railroads, extensive highway network and port as major selling points for companies. Memphis also has one of the busiest cargo airports in the world, he says.
IDI has done well in Memphis, and even with the current downturn, the company plans to mirror past successes in the market, parlaying new opportunities into future growth. “This will be the seventh major park that we’ve done in the Memphis area,” Nelson says. “The vision for all of those and this one is a park that gives us long-term value because of the quality of the buildings, the quality of the ownership and the quality of the tenants.”
— Jon Ross