208,000-SF Lease Fills DP's First LogistiCenter Building

CARLISLE, PA-Kuehne + Nagel Inc. has signed a long-term lease for 208,000 sf at 1501 Distribution Dr. The property is in DP Partner's 246-acre, $160-million master-planned LogistiCenter. This agreement combines with bookseller Border Group's 598,474-sf lease, signed in mid-2005, to take occupancy in the 806,474-sf building to 100%. This is the first of up to seven buildings aggregating four million sf planned here by Reno, NV-based DP. It was completed in 2004, a second was completed in fall 2005, and a third is on the way.

The Naugatuck, CT-based third-party logistics supplier also recently expanded from 122,400 sf to 153,000 sf, which represents the entire building at 4980 Longley Lane, in DP's Dermody Aircenter business park in Reno. The tenant is a wholly owned US subsidiary of Schindellegi, Switzerland-based Kuehne + Nagle International AG.

A team from CB Richard Ellis, which included Bayne Porter, VP of the global logistics group in Atlanta, and Patrick Lafferty, VP in the Harrisburg office, represented Kuehne + Nagel in negotiating the Carlisle LogistiCenter lease. Michael J. Alderman, DP's director of leasing for the mid-Atlantic region, who is based in Harrisburg, represented the owner. The aggregate value of the transaction is undisclosed.

"The fact that we could lease a building of this size in such a short period of time proves that the demand for high-quality distribution facilities is real and justifies our investment," says Stephen G. Bailey, DP's mid-Atlantic regional director. Further justification came with the signing of a lease to an as-yet unidentified tenant for 54% of DP's second building in the park here. It is a 550,184-sf facility, also built on spec. Alderman declined to disclose the value of the transaction but tells GlobeSt.com the asking rental rate for the facility is $4.25 per sf.

A third spec building is expected to break ground this summer. Alderman says it will be constructed in two phases. "The first phase is an 811,000-sf building and the remainder of the parcel is available for expansion of the building or for additional parking if a tenant wants that." The facility's full build-out potential is just shy of 1.4 million sf. "We've seen build-to-suit interest for this building and other sites in the park," he says. The asking rent rate for this property is also $4.25 per sf.

"Prospects and leasing activity has picked up significantly in the Carlisle area over the past 12 months," Alderman says. "It's very encouraging." He expects the third building here will reach completion within 10 months of groundbreaking.