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PEABODY, MA-A high-flying company involved in the aerospace industry has signed a 10-year industrial lease for 70,000 sf here, with Paradigm/Precision Holdings committing to One Second St. in Centennial Park. The building is owned by Atlantic Management Corp. of Framingham.

“It’s a great deal for the market,” says Phil Burgess of Burgess Properties, who represented the tenant in the transaction. The lease represents growth for the erstwhile Palmer Manufacturing, a Malden-based company recently acquired by PPH. The company, which manufactures aircraft engine components, has been a fixture in Malden for decades, and Burgess says the firm had hoped to remain as close as possible to the main facility in Malden, which will remain open. Availability was limited and pricing was too rich in the inner suburbs, to meet the client’s requirements, explains Burgess, leading to the Peabody option.

Burgess is familiar with One Second St., having last year placed another tenant there that is leasing 22,000 sf. “It’s a well-managed, physically attractive building that works well for tenants,” says Burgess, who represented PPH along with Burgess Properties broker Stephen Nohrden. Atlantic Management was represented by CB Richard Ellis principals David Corkery, David Connolly and Mark Reardon, the building’s exclusive leasing agents.

One Second St. is situated on a 9.8-acre parcel and contains 140,000 sf of warehouse space and a 17,000-sf block of mezzanine office space. In addition to multifamily and retail properties, Atlantic Management owns more than two dozen industrial and office buildings throughout Greater Boston, including the prominent Lexington Technology Park on Route 128 in Lexington that recently secured Shire Pharmaceuticals of Cambridge for more than 400,000 sf.

A year-end review of the suburban Boston industrial market shows a difficult 2007 for Route 128 North, which posted negative net absorption of 420,000 sf, including minus 90,000 sf in the final quarter. Encompassing 21 million sf of the 51.2-million-sf Metro North region, Route 128 North’s vacancy rate of 11.3% is still below the market average of 13.5%, and has an average asking rate of $9.39 per sf, second highest among 11 submarkets tracked in the CBRE review and ahead of the overall average of $6.97 per sf. Although he would not discuss specifics of the terms at One Second St., Burgess indicates that the tenant was able to strike a “competitive” rate given the quality of the space.

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