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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.

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