Simmons Renews 236,500 Industrial Lease Early

SAN LEANDRO, CA-Simmons Bedding Co. has inked an early renewal for a 236,500-square-foot manufacturing facility here that it has occupied for approximately 20 years, according to Jones Lang LaSalle, which brokered the deal. One of the largest renewals in the I-880 Corridor year-to-date, the lease commences in July 2010 upon expiration of the existing agreement. The building owner is Orton Development.

Local industry sources tell GlobeSt.com the value of the five-year, triple-net lease is approximately $5 million and includes flexible terms reflective of today’s tumultuous economic environment, such as the ability to shrink by a certain amount without penalty. The discount is in part reflective of the fact that the building, located at 1700 Fairway Dr., is not built to the standards of a modern manufacturing building.