The company, which has recently pulled out of 240,000 sf at the site, is withdrawing six months early on its lease, David Sheldon, Endeavor marketing director and broker, tells GlobeSt.com. "We knew it was coming," he says. "We just didn't know it was coming that quickly."
Solectron is consolidating its Austin leased sites to properties at Research Park and North Tech Center. The decision is the latest in the wave of consolidations, relocations and dropouts that has freed up better than a million sf of Austin sublease space in the past month.
Endeavor is hot on the trail of prospects to fill Solectron's space. Sheldon, ever optimistic, says the pullout "gives us the ability to get new tenants in there."
The 235-acre, 2.1-million sf Domain is commanding rental rates of 45 cents to 50 cents per sf triple net. Sheldon says it's one of the few sites, if not the only, in the Austin market that has about 380,000 sf available under one roof. The warehouse space being vacated can be used independently of the 240,000 sf even though the buildings are connected, he says.
Just eight days ago, Sheldon had said Solectron may opt to stay on as a tenant, but this week's decision obviously has laid that speculation to rest. Solectron is a third-party manufacturer and supplier for the semiconductor business, a key economic stimulant for the region.
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