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Potter Roemer Takes NE Industrial Space

ATLANTA-The fire protection firm used leverage from a larger lease to negotiate a shorter term.

By John McCloud | Updated on October 24, 2008

ATLANTA-Potter Roemer, a fire protection equipment manufacturer, has signed a four-year lease for 66,833 sf at 4103 Tench Road in suburban Suwanee. The deal will bring the 125,725-sf class A industrial building, which opened in spring 2007, to about 90% occupancy when the tenant moves in Dec. 1.

Walker Welford, director of industrial property for Taylor & Mathis Inc., the building’s developer and owner, says the tenant originally sought about 30,000 sf but changed course during negotiations to more than double the amount of space. Partly because of the shift upwards, Welford says the landlord was willing to accept a four-year lease term, one less than it preferred. “A five-year lease would be standard, especially on a first-generation building like this,” he explains. “It’s basically what you need to pay back costs.”

The fact that the tenant took options for three four-year extensions helped make the shorter term palatable, says Michael Engelhaupt, owner of Match Point Real Estate Services, which represented Potter Roemer in the transaction. “Signing for four years is their standard way of doing business,” he tells GlobeSt.com. “That’s the only deal they were willing to consider.”

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