Long-Term Tenant Works Out New 10-Year Lease

PHOENIX-United Freight Leasing Services Inc. a floor-covering logistics company that services the Southwest, has extended the lease on its headquarters location by inking a 10-year pact for 45,968 sf with the Aurora, CO-based ProLogis.

The quoted market rates for leased space within the area ranges from 35 cents per sf to 38 cents per sf, net. “This was a market-sensitive transaction,” says Rick Collins, an associate with locally based Ross Brown Partners Inc. who, with Curtis Brown, represented the tenant while ProLogis used an in-house broker to package the deal for 641 E. Watkins St.

The multi-tenant distribution facility includes one other tenant, which leases approximately half of the space, while UFS leases the remainder. “UFS is keeping the same amount of space, but is extending a lease on what was already a long-term tenancy,” Collins tells GlobeSt.com. “They’ve been there about 10 years so far.”

Collins says that, for the past year, UFS did examine other opportunities for a headquarters, including leased and build-to-suit options. However, “ProLogis offered the best deal and we went with it,” he says. He adds the new lease secured some improvements like an upgrade to the facility’s sprinkler system.