According to Worth Remick, vice president of CB Richard Ellis in Norfolk, there are no significant prelease commitments at this point. Remick, together with Ashton Williamson, first vice president of CBRE, are handing leasing for the building, which is located at 1400 Cavalier Blvd.

"Part of the expansion strategy is to provide additional space to the existing tenants if they want it," Remick tells GlobeSt.com. The facility has maintained near fully occupancy for the last four years, he says.

Remick did not know what the development costs of the addition would be. He says First Potomac had intended to build the addition when it first acquired the facility in May 2005.

"Our Bay Warehouse properties have always been a consistent-performing asset," says Tony Beck, regional vice president of First Potomac, in a statement.

Rents in the building have steadily increased over the years an approximate 40% from 2000 to 2007. Asking rates will be $5.25 per sf on a triple net basis, according to Remick.

Bay Warehouse has a private Norfolk Southern Rail spur and is very close to the Portsmouth Marine Terminal, Norfolk International Terminal, Newport News Marine Terminal and AP Moller's new private terminal in Portsmouth.

According to CBRE executives, the new addition at Bay Warehouse will be built on a steel frame and will be fully insulated. It will have dock, drive-in and rail-door loading, a clear height of 25 feet to 32 feet, column spacing of approximately 50 feet by 53 feet 4 inches, a dry sprinkler system throughout and more. Space in the addition will be divisible to 20,000 sf.