FedEx signed a 10-year renewable lease for the property, which sits at 5191 Fermi Dr., a company source tells GlobeSt.com. The negotiated lease rate is not being released by the parties involved. The going NNN lease rate for large, high-cube warehouse leases in the area is approximately $0.40 to $0.45 per sf per month, according to local industry sources.
FedEx is expanding operations nationwide as part of a plan to increase the number of packages it can process daily to 6.1 million by 2014 from 3.8 million today. "There are 200 facilities like this one [in Benicia] all over the country that we are working to relocate or otherwise expand," the source says.
Jeff Kernochan with the Los Angeles office of Fischer & Co. represented Fed Ex. Matt Bracco with Cushman & Wakefield represented Panattoni. Fischer & Co. also recently represented FedEx in a similar-size lease in Newark, CA.
The Fairfield facility will be used to process packages headed to Solano, Napa, Marin and Contra Costa counties. The Newark facility will be sued to process packages headed up the San Francisco Peninsula.
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