Great Southwest Tenant Expands, Relocates

USF Processors, an operating company of Chicago-based USF Corp., will get an extra 23,416 sf of office/warehouse space in a move from 4100 Fleetwood Dr. to 4332 Empire Rd., both owned by the Estate of James Campbell. In reality, the move is just one road over in the upper quadrant, near FAA Boulevard, in the Great Southwest Industrial District, a submarket where deals have been slow to close for aging buildings facing stiff competition from newer product in today's particularly aggressive negotiating scenarios.

In USF's case, it's chosen to stay in a neighborhood with somewhat newer buildings, easy freeway access and proximity to the Dallas-Fort Worth International Airport, the most frequently cited reasons as the decision makers for deals in that area. Details of the deal and the relocation timeframe were not available by publication time.

According to on-line information by the Trammell Crow Co. team in charge of the 21-year-old asset, the 238,922-sf Empire Road facility had 155,506 sf sitting empty prior to the signing. And, the rate is negotiable. According to Cushman &Wakefield of Texas Inc.'s first quarter report, the 60.7-million-sf submarket's rents went from $3.63 per sf to $8.81 per sf and vacancy was 13.8%.

The fully air-conditioned structure along Empire Road will be used as a state-of-the-art pharmaceutical processing facility for USF Processors' contracts with McKesson, Kroger and Albertsons. USF Processors will employ more than 200 people at the site, according to a C&W press release.

Scott Krikorian, principal with Trammell Crow negotiated the deal for the building owner, a San Francisco entity with substantial industrial holdings in Dallas-Fort Worth. Kurt Griffin, senior director in the Dallas office for Cushman & Wakefield of Texas Inc., represented the tenant, which headquarters at 4055 Valley View Lane in Dallas.