Medical Products Maker Inks 128,988-SF Deal

MEMPHIS-Tokyo-based Terumo Medical Corp. will consolidate two metro-area locations when it moves into 128,988 sf at Stateline Building E in January. The lease leaves 108,000 sf vacant at the 409,176-sf industrial building.

The deal with the manufacturer of medical devices and supplies is the sixth lease signed at IDI's Stateline Business Park in less than six months, according to company officials. Approximately 75% of the 1.7-million-sf park is now leased (25% vacancy), an IDI spokesman tells GlobeSt.com. He adds that IDI isn't releasing the lease specifics, except to say that it is a long-term lease.

The industrial business park is in Southhaven, MI, just minutes from Memphis. It is strategically located near Interstate 55 and Memphis International Airport. Stateline Business Park is also close to the BN, UP and CN/IC-CSX intermodal terminals."Terumo needed to remain near the FedEx hub at Memphis International Airport, and the company wanted the brand new, expanded space that Building E offers," says Tim Moore, IDI vice president of leasing in the Memphis office. "The company will also benefit from DeSoto County's tax incentives and lower operational costs."

Stan Myers of Beltz Realty represented Terumo Medical, and Moore represented IDI. Cushman & Wakefield's industrial overview for the third quarter puts average rental rate for space in Memphis at $2.55 per sf.

Stateline Building 3 came on line in May and features 32-ft clear height ceilings and ESFR sprinklers. IDI is also developing two more buildings at the 230-acre industrial development. In September, the Atlanta-based industrial developer began construction on the 740,700-sf Building F and the 291,972-sf Building B. Building F is slated for delivery in May 2007 and Building B in March 2007, as GlobeSt.com previously reported.

The new construction has been jumpstarted by the demand for industrial space in the county. When all is said and done, IDI officials expect to have 3.9 million sf of class A industrial space at Stateline Business Park, officials say in a statement.

Year-to-date, according to Cushman & Wakefield, the metro-area industrial market has seen overall absorption of 3.4 million sf, with leasing activity in the third quarter registering 2.3 million sf. Other recent IDI leases at the park include Aerospace Products International, Inc. (172,188 sf), Imation Corp. (364,140 sf) and ITT Corp. (96,588 sf).