SAN ANTONIO-A wholly owned subsidiary of Michelin Corp. widened its Texas presence through long-term leases of industrial space in San Antonio and Austin. The leases commence on Oct. 1, and the new tenant will pay from $4.35 per sf to $4.80 per sf, triple net, for a total of 59,000 sf in the two locations.
Tire Centers LLC of Duncan, SC took down 33,000 sf in a seven-year lease at the ProLogis-owned Tri County Distribution Center on F.M. 3009 in Schertz, a suburb of San Antonio. Meanwhile, further north on Interstate 35, the tire company ended up taking 26,000 sf of space for five years at 15877 Long Vista Dr. in north Austin.
Both leases involved turnkey deals and in both cases, Tire Centers' requirements were very specific, meaning a good chunk of industrial product was eliminated as possibilities in both markets. "Their requirements had to be 28-foot clear or better, and we don't have a lot of that here," says Brian Allison, industrial advisor with Grubb & Ellis Co.'s San Antonio office.
Tenant representative Allison brokered the San Antonio deal. He tells GlobeSt.com that another challenge was simply finding industrial space. "The stuff we're building is being absorbed pretty quickly," he comments, adding that ProLogis buildings, for example, tend to be 100% occupied by the time the company breaks ground on new product. In the Tire Centers deal, ProLogis was self-represented.
In Austin, Tire Centers was shown a few more buildings, but the site chosen in the area's far north submarket was ideal because there wasn't much necessary in the way of tenant improvements. Chris Gamel, vice president of transaction services with Grubb & Ellis' Austin office, says the company is trying to expand its Texas market presence and seems to like Austin.
"I think they're going to see how this location goes, then make a determination as to whether they'll expand," says Gamel, who represented the tenant. "They're bullish on the market and they wanted a presence north of the city, so this was a good location for them." The building's owner, Dallas-based Industrial Properties Corp., was self-represented in the transaction.
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