Ryder, based in Miami, conducts supply chain operations for the Austin manufacturing facilities of Santa Clara, CA-based Applied Materials Inc., the world's biggest maker of equipment for making semiconductors. Overall, Ryder manages 288,000 sf of industrial space in Austin for staging delivery of parts to Applied Materials' operations. Ryder manages an inventory of 40,000 parts and coordinates and picks up components from suppliers and warehouses them until time for delivery.
The lease kicks off 2003 with a bang for Austin's industrial market, which was battered in 2002 by wholesale contraction of technology companies. The market ended 2002 with a 15.4% vacancy rate and negative absorption of 1.2 million sf.
Scott Flack, a Gottesman Co. broker who participated in the deal, tells GlobeSt.com that Tech Ridge's Triple Freeport designation, which provides tax-free zones for up to 170 days for parking imported inventory, was important to Ryder. "When you've got a large amount of inventory, it makes a huge difference," he says.
Flack and Steve Mattingly negotiated for Gottesman, the property's owner and developer. Gail O'Connor in Trammell Crow Co.'s Austin office and Seth Kelly of its Dallas office represented Ryder.
Tech Ridge is a 1,000-acre development in northeast Austin between Parmer and Howard lanes. Besides Applied Materials, Dell Computer Corp. and Samsung Austin Semiconductor have operations in the area. The development has built one million sf and another one million sf is planned. The building at 710 Howard Lane that Ryder recently leased has 28-foot clear heights, 50-foot square bays, large truck doors and cross-docks.
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