Cycle Gear Inc. signed a seven-year, 27,000-sf lease at 4701 Industrial Way, and CytoSport Inc. signed a seven-year, 67,500-sf lease at 4795 Industrial Way. Both properties are part of Lincoln Distribution Center, Phase II, which is a 243,000-sf distribution facility. The center is located on Interstate 680 within the Benicia Industrial Park. The property still has about 54,000-sf of space available for lease.
Cycle Gear, a motorcycle accessory retailer, plans to use its new space for storage and distribution of motorcycle parts, accessories and clothing and general office purposes. CytoSport Inc., a manufacturer of performance nutrition supplements, will use its new space as storage and distribution and manufacturing of health beverages.
According to Brooks Pedder of Colliers International, the Solano County market fared well in the fourth quarter of 2002. Pedder says that the county's overabundance of inexpensive labor and reduced facility costs are attractive to Bay Area firms looking for solutions to new problems.
"The bottom line matters again," Pedder says. "CFOs are searching for ways to reduce operating expenses and our rental rates are 25% less expensive than the Bay Area across the board, even with the drop in rental rates in 2002.
According to Colliers' fourth quarter report, industrial vacancy rates in the county are 6.5%. Benicia's industrial vacancy rate sits at 2.8%, down from 4.9% in 2001 and Fairfield's vacancy rate is 2%, down from 5% in 2001 and 9% in 2000.
Pedder and Phil Garrett, also of Colliers, represented the landlord, Lincoln Property Co., in both transactions. Jeff Starkovich with BT Commercial represented Cycle Gear Inc. and Graden Travis of Cornish & Carey Commercial represented CytoSport Inc. The lease values were not disclosed.
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