(To read more on the industrial market, click here.)

SPOKANE, WA-Core-Mark International of South San Francisco is consolidating its regional operations here into a 100,000-sf warehouse that will be developed by locally based Crown West Realty LLC. The distributor of packaged consumer goods to the convenience retail industry has signed a long-term lease for the building, which it expects to occupy in November.

Core-Mark’s regional operations are currently housed in two different metro-area buildings. One of the buildings is located within the Spokane Business and Industrial Park, which is owned by Crown Realty. Core-Mark’s new building will be built on a 10-acre parcel contiguous to the park.

Crown Realty will start moving dirt for the project in the next couple of weeks. Core-Mark expects to move in by mid-November. The cost of the building is about $6.5 million. There is enough extra land to expand the facility by 50,000 sf in the future. The negotiated lease rate was not released by the parties involved; the triple-net asking rate for new space in the park is $0.38 per sf per month.

Crown Realty has been marketing 30 acres of expansion land north of the original park for several years, but a company source tells GlobeSt.com that the demand began about 18 months ago and has eaten up all but a few parcels. Fed Ex took 10 acres, Core-Mark is taking another 10 and the remaining 10 acres are being sold off in 1 acre parcels, with only four parcels remaining.

“With low interest rates, everybody on purchase bent for last three or four years,” says the source. “All the decent existing structures have been acquired, so if a guy wants to own he has to buy land and build.”

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