TAMPA-The Eagle Creek Business Center has inked a 29,400-square foot lease deal with Mike’s Pies. With the lease, the three-building, 260,305-square-foot office-warehouse complex is 96% occupied, defying the market norms.
Indianapolis, IN.-based Duke Realty owns and operates Eagle Creek Business Center. Duke Realty’s Vice President Tim Hain represented ownership in the transaction. Rian Smith, an associate in the Tampa office of Cushman & Wakefield, represented Mike’s Pies in the 10-year lease at Eagle Creek III.
“We’ll have about 10,000 feet left in the Park after Mike’s Pies moves in,” Doug Irmscher, senior vice president of Duke Realty’s Central Florida operations, tells GlobeSt.com. FedEx and BayCare, a community-based healthcare system, are also tenants of the business center, which is located near Tampa International Airport.
The Tampa-based producer of pies and other desserts will move its 30-employee operation from 8420 Sunstate St. to Eagle Creek III, a 75,354-square-foot building located at 8601 Florida Mining Blvd. Mike’s Pies is planning to take occupancy of the space on Dec. 1, 2010.
“We don’t see a lot of 10-year leases these days,” Smith tells GlobeSt.com. “From that perspective it’s atypical. Three to five years is the norm. This lease represents not only a commitment to the landlord but also a commitment for the business itself. It gives Mike’s Pies room to grow so they won’t have to move again for a long time.”
Although Irmscher declined to offer the terms of the deal, industry sources cite a healthy tenant improvement allowance as well as rent reductions. Mike’s Pies may be inking a deal at the market’s bottom. During the second quarter, Tampa Bay’s overall industrial vacancy rate held steady at 9.2%, according to Cushman & Wakefield, and tenant demand increased. The market is seeing positive absorption again, and the recovery is expected to gain momentum in the quarters ahead.
“We’ve found a bottom in terms of the economics and concessions and we’ll just have to see how long it takes before we start moving in the right direction,” Irmscher says. “At this point, the market is just trying to get the wheels off the runway and start heading back in the right direction.”
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