Quick-Turning Lease Takes Down 300,000 SF

DALLAS-In a four-week start to finish, Iron Mountain Information Management Inc. has carved out 300,000 sf of additional metroplex space, taking down the lion's share of the five-month-old Pinnacle Park West. The 15-year lease is the Boston-based firm's second large deal this summer with Panattoni Development Co.

The document storage giant, getting some immediate dead storage space on a temporary basis, will ramp up the operation to full speed over the next few months at 4117 Pinnacle Point Dr., with the lease officially going into effect in January, Peter Billipp with the Sacramento-based developer's Texas operation tells GlobeSt.com. Earlier this summer, Iron Mountain took down 400,000 sf in a Panattoni project near Memphis.

Billipp says the lease is a stair-stepped package at "a competitive rate in today's market." The 550,000-sf Pinnacle Park West II, now 86% filled, is being marketed at $3 per sf for a triple-net rent with a $3 per sf tenant-improvement allowance. The inbound tenant also landed a 90% tax abatement from the City of Dallas for the Triple Freeport-exempt site. Panattoni Construction Inc. is adding Iron Mountain's tenant improvements, which include a 4,000-sf office with a document viewing room.

Iron Mountain's local broker, Chris Teesdale of Colliers International Inc., started out with five possible locations on his list, but quickly settled into rapid-fire talks with Panattoni, according to Billipp. "Iron Mountain had a short time fuse because they had just won a new account," he says. Iron Mountain has 900 sites in the US and just roped off its 11th in Dallas/Fort Worth.

Billipp teamed with Panattoni's Texas partner Jon Napper to lock down a deal that slashes their Pinnacle Park space to 75,000 sf. "It bodes well for us that we've finished off our buildings. It shows absorption in Pinnacle Park is strong," Billipp points out. "The other developers are in a great position to proceed with their development. We were the last big chunk."

Three months before Pinnacle Park West's second building delivered, the developer had landed its first tenant for the spec project. At the same time, Panattoni sold the big sister to Capri Capital Advisors LLC of Chicago.