Company Expansion Takes 40,000 SF

NOAGLES, AZ-As part of its expansion plan, North American Interconnect Inc. has signed a five-year lease for 40,000 sf at the 80,000-sf Drive Inn Warehouse on the area's far north side. North American will move into the space at 3269 N. Grand Ave. upon the building's completion in late 2006. North American, which just entered the area, currently occupies 40,000 sf at 2050 N. Smokey Lane in a short-term lease.

Though the specific ask and lease rates for the new location could not be obtained, a source with CB Richard Ellis Tucson LLC who is familiar with the deal tells GlobeSt.com area lease rates for similar property are $5.50 per sf, triple net. Drive Inn Warehouse, a new building, carried a negotiated lease rate. Also thrown into the deal were tenant improvements and build-outs, which included building storage and office space. The remaining 40,000 sf in the building has not been leased.

The source tells GlobeSt.com that Nogales is a border town containing many cold-storage and vegetable warehouses for the goods coming in from Mexico. "There aren't a whole lot of large spaces available there," she adds.

North American Interconnect is headquartered in Scottsdale and is a distributor of custom cable assemblies and wire harnesses. The new location will provide distribution and administrative activities for the company's North American production facility in Hermosillo, Sonora, Mexico. Nogales, AZ, the state's largest border town, is a sister city to Nogales, Sonora, Mexico. CB Richard Ellis-Tucson's John Slattery, Bill DiVito and Robin Lamont represented the tenant. Local property owner Nogales Property Management Inc. was self-represented.