"They're moving because they're tired of the rules and regulations related to operating a business in California," says Rick Foss, a senior associate with Grubb & Ellis/BRE Commercial LLC. "This is just one more business that is fleeing because of HR issues, taxation, workers compensation, power issues…I've done three relocations in the past year."
Pete Klees, a senior vice president with Grubb & Ellis/BRE Commercial LLC represented the building owner, 475 Vaughn LLC. The five-year lease is valued at about $900,000.
Foss, the tenant's broker, tells GlobeSt.com that Waste & Recycling Plastic Containers is a family-owned company and the entire clan is moving to the Valley. "They wanted to set up operations in the East Valley," he says.
Beyond location, Waste & Recycling Plastic Containers was looking for heavy power, good clear height, reasonable lease terms and the option to buy. "There just weren't a lot of owners who were willing to give them the opportunity to buy," Foss says.
Waste & Recycling Plastic Containers' lease takes the 1980s-era, 66,000-sf industrial building to 100% occupancy. The company plans to begin operations in its new facility in January 2005, Foss says. Kent Hanson with Grubb & Ellis/BRE Commercial assisted both Klees and Foss.
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