While Victory certainly is tightening its belt, the subleases aren't all bad news. Jeff Peden of Cushman & Wakefield of Texas Inc.'s Houston office tells GlobeSt.com that the Blankenship space came to market when Victory moved into a 311,600-sf build-to-suit at 9010 W. Little York Dr. Peden confides, though, that Victory has put 91,200 sf of its new address on the sublease market, at below-market rates, due to business cutbacks and the tight economy. The building owner is seeking 30 cents per sf triple net for its two-month-old warehouse.
Peden says the company expanded rapidly during the Internet phase, a prime mover of the shipping industry as more products were offered through the mail. "They have pulled back from that aggressive expansion," he explained of the cause behind the rash of sublease space that the distributor has opened up.
AAA Box Co. is taking the lion's share of the Blankenship Drive warehouse, clearing a 54,500-sf lease. Peden, David L. Cook and Todd A. Mason, all with C&W, represent Victory in its sublease strategy. Jim Arledge of Houston's Arledge & Co. spoke for the tenant.
Hogan Hardwoods & Moulding will occupy the 20,000-sf balance. Hogan used an in-house company rep to close the deal.
In the Rio Grande Valley of Texas, Hunter Douglas Wood Products has settled into 28,800 of industrial space, also a Victory sublease for its 2111 E. Hester Ave. in McAllen.
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