FARMERS BRANCH, TX-With a 60-day search now history, Celestica International Inc. is making plans to complete its move by year’s end into 149,868 sf of the 199,868-sf Valwood 25. Sources say the lease carries a three-year term.

Celestica’s tenant representative, Allen Gump, executive vice president for Colliers International Inc. in Dallas, can’t confirm the lease length due to a confidentiality clause, but he did tell GlobeSt.com that Valwood 25 at 13755 Diplomat Dr. was the only one of 12 buildings under review “that really hit all the criteria.” The Toronto-based tenant wanted a fully air-conditioned cross-dock building with heavy power, ample parking and a location along a bus line so employees have access to mass transit.

Gump says Valwood 25 is requiring some immediate and moderate tenant improvements to meet the move-in deadline, including an 11,000-sf office finish-out. Celestica needs to have Valwood 25 up and running before it can completely shut down an 85,000-sf operation at 1050 Venture Court in nearby Carrollton. Gump says Celestica has built in enough time to complete the relocation without extending its stay at an eight-year location.

The search included new and old cross-dock buildings in and Dallas/Fort Worth International Airport, Plano and Richardson. “We were looking for a specific type of building. We just got lucky and found the right building,” Gump says, adding the tenant’s must-haves would have been “brutally expensive” if retooling had been necessary. Celestica provides electronic manufacturing services, including design and post-sales repairs for giants like San Jose, CA-headquartered Cisco Systems Inc., Santa Clara, CA-based Sun Microsystems Inc. and IBM Corp. in New York City.

“It’s a nice deal. I think the building was priced well,” Gump says. The 24-dock structure was on the market at a negotiable rate. According to local market reports, Valwood space ranges from $5.13 per sf for general warehouse space to $7.53 per sf for research and development space.

The deal bumped the San Francisco-based Rreef North America-owned building to 100% occupancy. Negotiating for Rreef was CBRE senior associate Steve Trese in Dallas.

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