The company relocated from a nearby facility, expanding to40,000square feet from 24,000 square feet. Tom Getner fromTranswesternrepresented the landlord, RREEF.
The JDS deal is typical of the flux in the leasing market, hetellsGlobeSt.com. Generally speaking, there has been a strong runofrenewals among tenants "but in some cases concessions havebeenimpossible to ignore," Bosica tells GlobeSt.com. Some tenantsare taking advantage of good dealsto upgrade their space; othersare taking advantage of quality B spaceto downgrade and save evenmore money. "There has been a flight toquality and at the sametime, a flight away," he adds.
JDS is an example of the latter, Bosica says. It moved fromclass A spaceto a class B property that is well located and wellmanaged. "It ispaying only a bit more per month for all thisadditional space." Rates have come down for bulk/distributionanywhere from $4 a square foot to $4.50a square foot, triple net,he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
