CDW Inks 513,000-SF Deal for Vegas Distribution Center

NORTH LAS VEGAS, NV-CDW Corp. has inked a long-term lease deal here for a 513,000-sf distribution facility that will be built to suit the publicly held retailer of computers, components, software and electronics. The facility will be located on 25 acres within LogistiCenter, a 102-acre, master-planned business park being developed by Reno-based DP Partners. DP’s regional manager Brad Meyer tells GlobeSt.com the facility will be used to serve CDW customers located in the Western US, complementing the company’s existing 450,000-sf distribution center in Vernon Hills, which is nearing capacity. Construction of the building is under way and headed for completion this fall. The building is expected to be operational by the end of the year. Suzette La Grange, the CB Richard Ellis leasing agent who heads up leasing efforts for LogistiCenter, tells GlobeSt.com the transaction is a significant one for the Southern Nevada industrial market, which has heretofore existed mainly to service the casino resort industry. “This is a substantial transaction that puts us on the map for regional distribution centers,” she says.CDW’s facility will have a 32-foot clear height, 84 truck docks, ESFR fire-safety system, 50-foot by 50-foot bay sizes and parking capacity for 500 vehicles. In addition to the distribution space, the facility will include a 25,000-sf product configuration center in a clean-room type setting. Machinery, equipment and leasehold improvements for the new distribution center are expected to be between $30 and $40 million. CDW’s lease rate is not being released. The asking rate for space in LogistiCenter is $0.34 per sf per month, triple net, and the average rate in North Las Vegas is $0.35 per sf. CDW was represented in the transaction by CBRE team out of Chicago that is headed by Lisa Konieczka.CDW’s building will be the third at LogistiCenter, which eventually will comprise two million sf of buildings. The first building developed is 266,000 sf and 87% leased, with leases out for the remaining space, says La Grange. Tenants include Nailor Industries Inc., a Houston-based manufacturer of air-handling products for the HVAC industry; Houston-based Metals USA, Inc., the metals processor and distributor; and Exeter, PA-based Pride Mobility Products Corp., a developer and manufacturer of mobility products including power chairs, scooters and lift chairs. A certificate of occupancy for the second building, also 266,000 sf, is expected this spring. There are no signed leases for the second building, though there is interest, says Meyer.The CDW lease deal follows closely on the heels of two other significant lease deals for a Western US distribution facilities in North Las Vegas. Earlier this month, Murray Feiss Import LLC of New York inked a 207,000-sf, five-year lease for three quarters of a new speculative building within the Golden Triangle Industrial Park, a 1.5-million-sf development here that is owned by the Operating Engineers Pension Fund. The starting lease rate on that transaction is reportedly around $0.31 per sf, with annual bumps ranging from 2% to 4%. Concessions reportedly include several months of free rent and a $1-million tenant improvement allowance. Prior to that deal, Walker Furniture committed to 420,000-sf at the Cheyenne Distribution Center. Walker inked a 10-year deal for a brand new building developed by Trammell Crow on behalf of Multi-Employer Property Trust, a $3-billion collective investment fund whose primary beneficiaries are union pension funds. The lease rate on the transaction is reportedly about $0.31 per sf. Walker began paying rent on Feb. 1.