The space leased, which includes some office space, is located within the 458,000-sf BOMARC 45-70 building located at 9205 28th Ave. W. The term and lease rate on the transaction is not being released by the parties involved, but the advertised rate for the space is $0.27- to $0.35 per sf per month, triple net, or between $3.24 and $4.20 per sf per year, and a recent lease deal for a Boeing building in nearby Mukilteo, WA was done at $3.50 per sf per year.
Boeing Realty directs all real estate strategies, acquisitions and dispositions, development and leasing worldwide for The Boeing Company. Boeing Realty VP Colette Temmink says Giddens is the first tenant in the building, which Boeing previously used to assemble and distribute interior panels and storage bins and other parts used on the interior of Boeing's commercial airplanes.
"We have consolidated those operations into other existing areas in our Everett plant as part of a long-term program of lean manufacturing, which is enabling us to produce our airplanes on a smaller footprint," says one Boeing source. "So we're just making better use of the space we already have."
The BOMARC building is adjacent to the Snohomish County Airport-Paine Field at Airport Road and 100th Street SW. Giddens Industries President Paul Cavanaugh says the lease will not only allow consolidation but also will reduce costs "while improving our facilities to keep up with changing technology and customer requirements."
The remainder of the BOMARC building is currently for lease at the previously stated rates. Mike Shigley of Trammel Crow Company and Richard Peterson and Darrell Okada of Puget Sound Properties represented Boeing Realty in the transaction and have the leasing assignment for the building. Gary Bullington of Cushman & Wakefield represented Giddens Industries.
Last month, GlobeSt.com reported that hearth manufacturer Travis Industries has signed a 12-year, $19.2-million lease for Centre 41, Boeing's 476,000-sf industrial building at Harbour Pointe in Mukilteo. The 12-year lease included two five-year extension options. Based on the numbers provided by the parties involved, the average lease rate over the life of the initial term is $3.50 per sf per year, which is as much as $1.00 per sf less than the asking rate for other large industrial buildings in the same area, including at least one other building at Harbour Pointe.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
