Duke Renews 90,000 SF-Ikon Sugarloaf Lease

By Hortense Leon

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Business Park at Sugarloaf

ATLANTA-The Duke Realty Corp. has renewed a 90,350-square-foot lease for Malvern, PA-based Ikon Office Solutions, Inc., a Ricoh company that provides document management systems and services to its customers, at the Business Park at Sugarloaf. The park is a one-million-square foot office/industrial property in Duluth, GA, a suburb northeast of Atlanta. The tenant takes up a whole single-story office building.

Sugarloaf Parkway, which runs along the Business Park at Sugarloaf, is one mile to the west of I-85. This is the epicenter of the Gwinnett County market, says Chris Brown, senior vice president of Duke Realty’s Atlanta operations. The park is also near the Gwinnett County Civic Center, a complex which includes a performing arts center, a convention center and an arena.

Duke owns two thirds of the office portion of the Business Park at Sugarloaf, or 350,000 square feet, and that portion is 99% leased, says Brown. The park has half warehouse space and half office space. The Business Park at Sugarloaf is about 15 years old and the building that Ikon  occupies is about 10 years old, says Brown.

Brown says he cannot disclose the rental rate that Ikon is paying, but the asking rates for office deals in the area typically are in the $11 to $13 range, triple net, or about $20 per square foot altogether.

As for a buildout allowance, although Brown says he cannot talk about a particular lease, Duke may do a buildout for a tenant, depending on their circumstances, especially the length of the lease, he says. Ikon has a four-year lease. Duke’s leases are anywhere from three to ten years, says Brown.

“Ultimately, the success of the Business Park at Sugarloaf  is due to the proximity to the Gwinnett County Civic Center,” says Brown. “Also, the residential area near the park attracts business and tenants,” says Brown. 

Duke Realty is one of Atlanta’s largest commercial property owners with about 500 tenants and an industrial and office portfolio of more than 13 million square feet. Duke also owns about 900 acres of land which are for sale or for future development  in the greater Atlanta area.

Categories: Southeast, Office, Leasing, Atlanta