Webvan closed its doors Thursday and is walking away from the 350,000 sf warehouse it leased in Suwanee, GA, 30 minutes northeast of Atlanta, as well as two other buildings with a combined sf of 189,900.
Average rents in the area are $5.83 per sf, making the leases valued at more than $3.1 million a year.
Webvan plans to sublease its space and sell off equipment inside the buildings, Bud Grebey, the company's corporate communications associate, tells GlobeSt.com. "Obviously, this is a very difficult decision for us," Grebey says. "We have very loyal customers who are very passionate about Webvan."
He would not disclose the length of Webvan's leases or confirm their values to GlobeSt.com.
Grebey blamed the company's shutdown on Atlanta's highly-competitive grocery market and the prohibition on online alchohol sales. Webvan opened in the Atlanta market last May.
The company announced earlier this week it was shutting down its operations in Sacramento, CA and has retained Goldman Sachs Group Inc. of New York to explore options to save the financially strapped company, including a possible sale.
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