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PERRYMAN, MD-Occupancy at the 527,600-sf distribution warehouse at 504 Advantage Way has reached maximum capacity now that IKEA has increased its take of space from 200,000 sf to 345,000 sf. Under a new lease with property owner First Industrial Realty Trust Inc., the Swedish home furnishings store now has claim to 65% of the 13-year-old building.

CB Richard Ellis's Bill Pellington and Justin Mohler represented both parties. Information on the value and length of the lease has been kept close to the vest by all those involved, but space in the building had previously been marketed for $3.95 per sf.

"IKEA services a number of its mid-Atlantic retail locations through this warehouse, and the project's strategic location near I-95 has proven to be a major advantage for timely and cost-efficient deliveries," says First Industrial Trust regional director Mark McConnell, who joined colleague Brian Sheehan and the CB Richard Ellis team in handling the lease negotiations for the owner. He adds that IKEA continues to experience strong growth in this market, which is what stimulated their need to expand and extend the arrangement.