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Shippers Warehouse Renews 400,000 SF

DALLAS-Shippers Warehouse has occupied the entire building for 22 years. The landlord's agreement to pay for second rail spur provides a major incentive.

By John McCloud | Updated on March 20, 2009

DALLAS-The landlord’s willingness to bring in a second rail spur smoothed the way for a long-term renewal by Shippers Warehouse Inc. at 8901 Forney Rd. in Eastpoint Business Park. The 419,626-square-foot lease, which encompasses the entire building, is the largest in the East Dallas-Garland submarket in more than 15 months, according to Tom C. Smolik, a principal with TIG Real Estate Services.

Smolik brokered the deal along with TIG senior vice president Michael T. Grant on behalf of CBRE Investors, which manages the building for the owner, the State of Alaska’s Permanent Fund Dividend Division. He says the logistics company, which uses the building as its headquarters and primary distribution center, has been a tenant since the property opened in 1987. Smolik will not give the lease term but he mentions it is only the second renewal in 22 years and runs significantly longer than the standard five or seven years typical of most such transactions.

Smolik also will not release the rental rate, but he calls the offer of a second rail spur a “big carrot” in regard to the tenant’s willingness to agree to a rate the landlord found acceptable. In general, he says, rents for large spaces in the particular submarket fall in the high $2-a-square-foot to high $3-a-square-foot range. Though the Forney Road building is older than many of its competitors, the TIG broker tells GlobeSt.com it can match them in functionality except for the smaller size of its truck court. The cross-dock facility offers 28-foot ceiling heights and 42 loading docks.

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