Mary Jo Giammalva and Kelly Landwermeyer, both of Weingarten Realty represented American National in the deal. Frank Oronato, vice president with Grubb & Ellis Co.'s Houston office, has acted on the tenant's behalf.
According to Giammalva, North Brunswick's new location space is part of a 320,000-sf multi-tenant building. International Distribution takes up the remainder of the space in the tilt-wall building, located in the Portwall-Market Street Warehouses complex. The four-building complex totals 822,000 sf. Giammalva places lease rates in the submarket at 28 cents to 32 cents gross per sf.
Giammalva and Landwermeyer concur there has been a hesitancy with industrial tenants to sign long-term leases although the Houston economy is performing well. Many industrial tenants who supply larger companies are unable to secure long-term contracts due to the national economy's roller-coaster ride, says Giammalva.
Tenants who would normally ink three- to five-year leases are seeking pacts for as little as one year, says Landwermeyer. Conversely, building owners are unwilling to sign the shorter leases and thus negotiations have been tougher at the bargaining table. Giammalve expects the hesitancy to let up once the national economy stabilizes.
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