X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FAIRFIELD, CA-FedEx has leased a 331,000-sf high-cube warehouse on 18 acres here for its small package distribution division, FedEx Ground Package Systems Inc. The unit is currently housed in about one-third the space in Benicia, CA. It will relocate to the Fairfield facility in the spring. The building owner is Panattoni Development Co.

FedEx signed a 10-year renewable lease for the property, which sits at 5191 Fermi Dr., a company source tells GlobeSt.com. The negotiated lease rate is not being released by the parties involved. The going NNN lease rate for large, high-cube warehouse leases in the area is approximately $0.40 to $0.45 per sf per month, according to local industry sources.

FedEx is expanding operations nationwide as part of a plan to increase the number of packages it can process daily to 6.1 million by 2014 from 3.8 million today. “There are 200 facilities like this one [in Benicia] all over the country that we are working to relocate or otherwise expand,” the source says.

Jeff Kernochan with the Los Angeles office of Fischer & Co. represented Fed Ex. Matt Bracco with Cushman & Wakefield represented Panattoni. Fischer & Co. also recently represented FedEx in a similar-size lease in Newark, CA.

The Fairfield facility will be used to process packages headed to Solano, Napa, Marin and Contra Costa counties. The Newark facility will be sued to process packages headed up the San Francisco Peninsula.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.