In working out the terms, the lease for the smaller building at5601 Alliance Gateway Blvd. will run co-terminus with the one for5651 Alliance Gateway. "Based on distribution, there was not abetter fit in the market than to have the building next door," saysTodd Hubbard with Dallas-based NAI Robert Lynn. He and NAI's RickMedinis bargained the pact against Steve Aldrich, vice president ofHillwood Properties. The buildings are joint venture-owned byHillwood and Parsippany, NJ-based Prudential Real EstateInvestors.

Hubbard tells GlobeSt.com that Premium Waters looked at alloptions before it took the overflow space two years ago and againon this go-round, but it was more a question of whether to holdonto the building for the long term. "The decision was in play sixmonths to evaluate the need for the long term," he says, addingother options were considered. "But to move that equipment wouldhave been very costly." He says the larger building's lease wasextended just last year.

The AllianceTexas distribution center is one of 10 in theMinneapolis-based Premium Waters' network. The firm is one of thenation's leading private-label bottled water suppliers.