CINCINNATI—In the past few years, the industrial market in the Cincinnati region largely recovered from the recession and 2014 has also started off right. OCTAL, a world leader in plastic materials manufacturing just chose to establish its first North American plant at 5399 East Provident Dr. in West Chester, OH, about 20 miles north of the city.
Mark Collins and Dean Collins of Cushman & Wakefield’s Dallas-based tenant advisory group joined Josh Young and Si Pitstick of Cincinnati Commercial Realtors, a C&W Alliance firm, to broker the 130,720- square-foot office and warehouse transaction for OCTAL.
“This was a six to eight month process of performing the proper studies and analyzing which markets made the most sense for OCTAL to place its first North American plant,” says Collins. “We worked very closely with our alliance firm partners at CCR to find the right mix of location, incentives and opportunity for OCTAL. This was a collaboration at every phase of the process, and that’s important when you’re dealing with an important, international client who is new to the market.”
The site sits within Duke Realty’s World Park just off I-75. Other notable tenants in the park include Totes Isotoner and TradeGlobal.
The new lease will help continue what has been a strong run for the metropolitan area. According to a new report from Cassidy Turley, the industrial sector around Cincinnati had a very active fourth quarter, with more than 615,000-square-feet of net absorption. It was the tenth consecutive quarter of positive net absorption.
“Demand for industrial space across Greater Cincinnati was impressive throughout 2013,” says Jarrett Hicks, senior research analyst for Cassidy Turley’s Cincinnati office. “Overall net absorption totaled nearly 5.2-million-square-feet for 2013, signifying the highest level of demand since 2005.”
Muscat, Oman-based OCTAL was formed in 2006 and has emerged as the world’s largest producer of polyethylene terephthalate, or PET, sheet and the largest PET resin producer in the Middle East. Recent expansion has tripled production from 350,000 metric tons per year to 1 million metric tons. Customers use the company’s products to package fresh food, beverages, pharmaceuticals and other consumer goods.
“We performed an in-depth site analysis to determine the optimal location for OCTAL’s long-term growth plan,” Collins adds. “They are a successful company that will bring jobs and investment into the area.”