Dal-Tile Signs 147,176-SF Relocation Lease for Distribution Center

MESQUITE, TX-Dal-Tile Corp. will fill 147,176 sf of distribution space near its headquarters, signing a medium-term lease for four-year-old shell space. The Oct. 1 move will darken about 80,000 sf in nearby Sunnyvale.

“They needed to grow and we were the closest opportunity for them to grow,” Nathan Lawrence with Dallas-based Trammell Crow Co. tells GlobeSt.com about a deal that was six months in the making. “They looked around. It took a lot of work to get it done.” Dal-Tile, which headquarters at 7834 CF Hahn Freeway, took down space in Peachtree Center at 510 N. Peachtree Rd., a 396,750-sf office/warehouse owned by New York City-based ING Clarion Partners. The deal pushes occupancy to 65% in the four-year-old building, he says. The warehouse space is on the market for $3.25 per sf.

Lawrence, teaming with TCC’s Dave Noble, says the ING Clarion space was up against several competitors in east and northeast Dallas. “We were really the only option that was close,” he says of the motivation for a location less than 10 miles from Dal-Tile’s headquarters.

Lawrence says the deal took awhile to lock in because “they were trying to nail down their true size. The deal fluctuated from 95,000 sf to what it is today.”

Dal-Tile operates 10 manufacturing facilities in the US and Mexico. Russell Peterson with Izora Commercial Real Estate in Dallas represented the tile maker and distributor.