Menlo, a San Mateo, CA-based subsidiary of publicly traded Con-Way Inc., is prepping for the move now to 601 S. Royal Lane from 100,000 sf at 1110 Executive Dr., about three miles to the northwest. "They just outgrew that building," says Jeff D. Thornton, senior vice president and head of the Indianapolis-based Duke's Dallas/Fort Worth operations.
Thornton tells GlobeSt.com that Menlo's lease is pushing a five-year term, with Menlo stepping up to backfill second-generation space that went dark at the beginning of this year. "They can grow within that building with us, up to 228,210 sf in the near term. In the long term, because we own six million sf in that submarket, they have the ability to go beyond 228,000 sf," he stresses.
When the move is done, Menlo plans to boost its employee count from 40 to 140. The third-party logistics provider has dedicated 70,000 sf of the 43-door cross-dock for logistics and distribution operations of new clients.
Thornton says the Menlo requirement changed several times because new customers were being added to its roster. Talks began in February, with the logistics provider confining the search to the northern tier of the Dallas/Fort Worth Airport submarket. "We spent a lot of time along the way to get them to the right configuration," he explains.
Randy Wood, Duke's vice president of leasing, banked the win for the seven-year-old building, which was being marketed for $3.25 per sf. Menlo's local team consisted of John Lancaster, president of Robert Lynn Co.'s property management division; Gary Lindsey, senior vice president of global logistics for Grubb & Ellis Co. and associate Amanda Koonce; and Stephen Shields, president of Transportation Property Co. of Solana Beach, CA.
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