Wilsonville Distribution Center Gains 30,000-SF Tenant

WILSONVILLE, OR-Tab Warehouse Inc. has leased 30,000 sf at AMB Property Corp.’s Wilsonville Distribution Center, a 250,000-sf building that was delivered 18 months ago. The five-year lease takes the building to about two-thirds full, according to the broker with the leasing assignment, Dave Ellis of Trammell Crow Co. Located near Interstate 5 at 29899 SW Boones Ferry Rd., the publicly traded industrial REIT’s 250,000-sf building was delivered in May 2003. AMB invested a total of $11 million in the development, accoridng to its latest annual report. The company expected stabilization of the asset by March 2005 and its disposition by early 2005, according to SEC filings. In October 2003, Nike signed on as the first tenant, leasing 80,000 sf on a short-term basis. In February 2004, EuroBest Foods signed a 3.5-year lease for 77,000 sf in the building. In April, Alliance Door Products LLC signed a five-year lease for 50,000 sf, taking the building to over 80% leased. Sometime between then and now, Nike vacated its space.The lease by Tab Warehouse backfills a portion of the space vacated by Nike. Tab was represented by George Slevin of GVA Kidder Mathews. The negotiated lease rate was not immediately available, but the asking warehouse lease rate in the building is $0.34 per sf and the surcharge for office is $0.65 per sf. Ellis tells GlobeSt.com he has a couple of prospects for each of the two spaces available in the building, one 41,000 sf and the other 50,000 sf. “Leasing activity has been brisk,” he says, adding that there is only one other existing space of similar size in the Wilsonville area, at the Stafford Distribution Center. In another 60 days, there will be one additional option, a brand new 40,000-sf building at Berrey Properties’ Canyon Creek Business Park located off exit 286 from I-5. Ellis also has the leasing assignment for that development.According to data from Grubb & Ellis, the 16.3-million-sf I-5 South Corridor industrial submarket experienced nominal negative absorption in the third quarter and ended September with a 7% vacancy rate.