Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BRISBANE, CA-National specialty retailer Williams-Sonoma has expanded and extended its warehouse lease agreement with Principal Real Estate Investors in the Crocker Industrial Park, according to the brokerage firm in the transaction, BT Commercial Real Estate. Williams-Sonoma, which signed on 18 months ago for a 106,234-sf building at 435 Valley Dr., has agreed to lease a second, 88,100-sf building from Principal at 440 Valley Dr. for seven years and extend its original lease to match, according to BT broker Jay Hagglund. Hagglund, along with fellow brokers Marshall Hydorn and Randy Keller brokered both the expansion and the original deal.”The original lease was done at the top of the market,” says Hagglund. “We did a blend-and-extend on that lease and expanded them next door,” which is to say Principal agreed to lower the rate on the original lease closer to current market rates in exchange for a larger lease commitment and a longer term.Hagglund declined to get specific with the lease rate, but other local brokers not involved but familiar with the transaction tell GlobeSt.com the value of the lease deal is about $10 million, which would equate to an average net lease rate in the low $0.60s per sf per month.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.