HANOVER, MD-Fashion retailer DTLR is taking 139,500-square feet of mixed-use space at 1300 Mercedes Dr. here. Only 30,000-square foot of the lease is devoted to office space. The remainder, CB Richard Ellis’ Mike Roden tells GlobeSt.com, is industrial space. The reason is simple: DTLR is expanding. “It is opening more stores around the region,” he says, “and its current warehouse couldn’t accommodate the additional operations.” The move to 1300 Mercedes Dr. was predicated on the available industrial space, he adds. “DTLR had a need for more office space too, but it was a secondary factor.”

John Wilhide of CBRE also represented DTLR in the transaction along with Roden. Ben Meisels with Cushman and Wakefield represented the building‘s owner, local REIT First Potomac.
The new lease means DTLR will consolidate its corporate office headquarters with its main distribution center, encouraging more synergy between the two functions. DTLR will move to its new headquarters in January 2012. The new building is located in the same business park where DTLR is currently situated, Roden says.

Built in 1985, the building offers overhead clearances of 28 feet, and proximity to BWI airport and major transportation arteries. The asking rate in the building is $6.25 per square foot, triple net, Roden says. He declined to give the full value of the lease.