GREENSBORO, N.C.-Raleigh, N.C.-based Highwoods Properties, Inc.,an owner-operator of suburban office properties in the Southeast,recently inked a 10-year lease with Dedon, Inc.

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The German luxury outdoor furniture maker will take up 78,821square feet of distribution center and office space at Highwoods’Enterprise Park II on Brigham Road in Greensboro.

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Brad Millsaps, a broker at Freeman Commercial Real Estate inWinston-Salem, represented Dedon in the transaction. Terms of thedeal were not disclosed.

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“Our talented team of professionals, strong balance street,high-quality portfolio and customer service have Highwoods in thefortunate position of being able to deliver on the promises we maketo our existing and new customers,” Ed Fritsch, president and CEOof Highwoods Properties, tells GlobeSt.com. Highwoods Propertiescompany-wide portfolio is 89.3% occupied.

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Millsaps tells GlobeSt.com that Dedon shopped the market hardbefore settling on Enterprise Park II in the Airport Corridorsubmarket of Greensboro. The site offered Dedon easy access to theTriad International Airport and major interstates.

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“Highwoods was able to configure the space at a much bettervalue than competing buildings,” Millsaps says. “That madeEnterprise Park II and efficient option for Dedon.”

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Although Greensboro has seen a few large deals in 2010, Dedon isamong the largest at nearly 80,000 square feet. In February,LabCorp leased 80,000 square feet in Greensboro for a call centerand the IRS leased 85,000 square feet of space to consolidate itsoperations.

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But these headline-making deals don’t characterize the market.Vacancy rates in the Triad reached 18.3 percent in the firstquarter of 2010. That’s up just slightly from 18 percent in theyear-ago period, according to the most recent data from KarnesResearch Co.

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Office vacancy rates were 19.2 percent at the end of 2009. ButTriad brokers long for the return of a healthy market, which ismarked by between 12 percent and 14 percent vacancy. There is about5 million square feet of office space sitting vacant acrossGreensboro, Winston-Salem and High Point.

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“The rates are at least 25 percent off where they were threeyears ago,” Millsaps says. “We’ve still got a lot to absorb. Thegood thing is the landlords are waking up to the realities and weare seeing more activity and more deals.”

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