TOLLESON, AZ-Less than three months after buying a 228,239-sf distribution center, Liberty Property Trust has signed Owens & Minor Inc. to a 7.5-year lease. The deal has roped off 80,000 sf of a recently delivered building.
The Mechanicsville, VA-based distributor of medical and surgical supplies is paying market rate for the 8313 W. Pierce St. space, but did get a large tenant-improvement allowance, according to John DiVall, senior vice president and city manager in Arizona for the Malvern, PA-based owner. "They have good credit and are a tenant of ours in other locations so we weren't uncomfortable with the above-standard TI," he tells GlobeSt.com. The quoted lease rate is 40 cents per sf, triple net.
Owens & Minor's lease will begin in late summer, with move-in scheduled for October. It's presently located at 107 S. 41st. Ave.
Liberty Property acquired the building shell from the Minneapolis-based Ryan Cos. US Inc. for $11.2 million in the spring. With one-third of the building now spoken for, he's optimistic that it will be 100% leased by the end of the third quarter, given the current state of the southwestern submarket's industrial market. "We're seeing some very good activity there right now," he says.
Although the existing bonds with Liberty spurred the tenant to lease the space, DiVall says its shell condition and access to Interstate 10 also weighed on the decision. "A lot of the interchanges going into that submarket off I-10 are improved with four lanes," he says. "But some are still two lanes and needing to be resurfaced. We're near one of the improved interchanges."
The CB Richard Ellis team of Joe Porter, Pat Feeney and Dan Calihan in Phoenix represented the building owner. Paula Osborne and Adam Faulk with Dallas-based Jackson & Cooksey Inc. were the tenant reps.
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