FedEx signed a 10-year renewable lease for the property, whichsits at 5191 Fermi Dr., a company source tells GlobeSt.com. Thenegotiated lease rate is not being released by the partiesinvolved. The going NNN lease rate for large, high-cube warehouseleases in the area is approximately $0.40 to $0.45 per sf permonth, according to local industry sources.

FedEx is expanding operations nationwide as part of a plan toincrease the number of packages it can process daily to 6.1 millionby 2014 from 3.8 million today. "There are 200 facilities like thisone [in Benicia] all over the country that we are working torelocate or otherwise expand," the source says.

Jeff Kernochan with the Los Angeles office of Fischer & Co.represented Fed Ex. Matt Bracco with Cushman & Wakefieldrepresented Panattoni. Fischer & Co. also recently representedFedEx in a similar-size lease in Newark, CA.