The Lincolnshire, IL-based Midwest Air Technologies' executive team was eyeing up eight buildings, including its existing location, when it gave the nod to a 492,000-sf empty building at 2300 Skyline Dr. Atlanta-based IDI Inc.'s cross-dock has been waiting for a tenant to light its space at least one year, delivering simultaneously with a 262,000-sf sister that's now fully leased to four tenants.
"We almost renewed, but the cross-dock situation was critical," Pat Haggerty, an independent tenant rep in Dallas, tells GlobeSt.com. "There are a lot of inbound and outbound trucks and containers." He says IDI's building has two lanes for staging areas that presented a "unique" situation and became a chief dealmaker at the end of the day.
In addition, the cross-dock building is set back in the park, has a large parking lot and is close enough to Midwest Air's existing hub at 1810 Kelley Blvd. that it won't impact commute times for its 60-employee skilled workforce, according to the broker. Midwest Air will pick up 49,200 sf of extra operating space and eight-foot higher clear heights when it relocates the Southwest regional manufacturing and distribution center, one of 20 in the US, Europe, India and China.
"It's a perfect functional fit. That was the main thing," Haggerty says. "Obviously it was very competitive. We had eight building to look at. It comes down to what works and the building itself." About 5,000 sf has been earmarked for an office for the manufacturer of chain link fences, lawn and garden products and power equipment.
IDI vice president John Leinbaugh says it took roughly five months to lock down the lease. "It's a good deal for everybody," he says. "And, I think it was market rate."
Leinbaugh is quoting $3.35 per sf, triple net for the cross-dock's remaining space and $3.60 per sf, triple net, for another 262,000-sf rear-load building that got its certificate of occupancy just 10 days ago. He says the Skyline Trade Center plan is to start work on a fourth cross-dock after the balance of Midwest Air's building is filled. "We're seeing some pretty steady activity," he says, adding the park's final piece calls for 500,000 sf.
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