Walker Welford, director of industrial property for Taylor &Mathis Inc., the building's developer and owner, says the tenantoriginally sought about 30,000 sf but changed course duringnegotiations to more than double the amount of space. Partlybecause of the shift upwards, Welford says the landlord was willingto accept a four-year lease term, one less than it preferred. "Afive-year lease would be standard, especially on a first-generationbuilding like this," he explains. "It's basically what you need topay back costs."

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The fact that the tenant took options for three four-yearextensions helped make the shorter term palatable, says MichaelEngelhaupt, owner of Match Point Real Estate Services, whichrepresented Potter Roemer in the transaction. "Signing for fouryears is their standard way of doing business," he tellsGlobeSt.com. "That's the only deal they were willing toconsider."

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City of Industry, CA-based Potter Roemer quickly zeroed in onthe Suwanee Pointe building because options for properties meetingits height specifications were limited, Engelhaupt says, adding:"There were only one or two buildings available that fit theircriteria." Welford says the annual asking rate for the property is$14.40 per sf triple net, with a tenant allowance of $5 per sf.

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Walker says Potter Roemer was actually the second tenant to signfor the space. "We had fully executed a lease with another companyfor about 40,000 sf, but the deal fell flat over the rise in steelprices," he says. "They realized they couldn't afford to continuedoing business at the prices their customers were willing topay."

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Located in the Duluth/Suwanee/Buford submarket, the building isone of three industrial structures Taylor & Mathis hascompleted in its Suwanee Pointe development. The second is a206,000-sf build-to-suit for Meggitt Defense Systems, a UK companythat provides computer-based weapons training for police andmilitary personnel. The third is a 105,000-sf building that is 50%leased to several smaller tenants.

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Two additional buildings of 60,000 sf and 80,000 sf are plannedfor the project. Walker says the developer hopes to begin site workfor the new construction by spring, with an eight-month completionschedule, though the launch will depend upon continued tenantinterest in the existing buildings.

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