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MEMPHIS-In separate deals, two companies have taken 600,000 sf of industrial space off the leasing market. The deals were inked for space at ProLogis Park Stateline.
Kyocera Mita America has signed on the dotted line for 300,000 sf at the 80-acre park two miles southeast of Memphis International Airport. Kyocera will use the space as a hub for its new national product distribution network--eventually serving 70% of the US, according to Denver-based ProLogis. Franklin Sports also signed on to occupy 300,000 sf at the same building. The company will use the space as its regional distribution operations, ProLogis adds.
ProLogis declined to reveal the length or rental rate of either lease; however, through a company spokeswoman, Jeremy Giles, ProLogis vice president and Tennessee market officer, tells GlobeSt.com the rents are comparable with the market average, and lease terms slightly exceed the current market average.
According to first quarter 2006 numbers, CB Richard Ellis puts the vacancy rate in the metro industrial market at 18.9% and rental rates at $2.78 per sf, the lowest in three years. Six million sf of industrial space came online in 2005, the CBRE report adds, with nearly one million sf coming online in the first quarter of 2006 and 3.25 million sf expected in the second quarter.
The first building at the industrial property is now 100% occupied. At full build out, ProLogis Park Stateline can accommodate up to 1.53 million sf. Phase I was completed in 2005. The one-story building boasts 61 loading docks, 32-ft ceilings. It is approximately six miles from Interstate 240.
ProLogis made its debut in the Memphis market in 1995. Its current holdings in the market, which includes Mississippi, is more than 10 million sf.
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