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HARRISBURG, PA-Meridian, ID-based MWI Veterinary Supply Co. renewed for seven years and expanded its Northeast regional distribution facility at 7195 Grayson Road from 24,800 sf to 40,000 sf. The aggregate value of the new agreement is approximately $1.3 million, according to Pat McBride, VP in the King of Prussia office of Grubb & Ellis.

McBride, along with SVP Steve Bonge and VP Tim Brogan of Grubb represented the owner, Boston-based High Street Equities in the negotiations. Jason Grace of Lemoyne-based Landmark Commercial Realty represented MWI. The 100,000-sf distribution facility was completed in 1992 and is 100% leased.

“This is a very healthy market,” McBride says of the central Pennsylvania industrial sector. “In order to make way for this expansion, we had to negotiate termination of a lease by another tenant,” he tells GlobeSt.com. He says this industrial market encompasses about 65 million sf, “and vacancy is at less than 2%.” As the vacancy rate has dropped, rental rates have risen.

“The average rent for small-space tenants is now between $4.50 per sf and $4.60 per sf, compared with about $4.25 per sf a year ago,” McBride says. “For big-box tenants that require about 150,000 sf or more, the average is now about $4.25 per sf, versus $4 per sf a year ago.” The Grayson Road facility is one of MWI’s eight regional distribution centers nationwide.

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