GRAND PRAIRIE, TX-Domino’s Pizza has renewed its industrial lease at Heller Industrial Park here, inking a three-year deal for 100,469 square feet.
The national pizza delivery company uses its space in the 200,000-square-foot building at 900 W. Freeway for its pizza dough production facility. The building has been built-out to food grade standards and is certified by the American Institute of Baking International. It also boasts a significant amount of cold and freezer space.
Domino’s has been a tenant in the 1980s-era property for 15 years, according to Frederick Kurtz, vice president and project manager of Heller Industrial Parks Inc. The Edison, N.J.-based company owns 1.5 million square feet of industrial space in the Metroplex including the building in which Domino’s is a tenant.
Kurtz represented Heller in lease negotiations. Jean Russo of Cushman & Wakefield of Texas Inc.’s Dallas office represented Domino’s.
Although Domino’s had a lot of options in the Grand Prairie submarket, Heller was eager to keep Domino’s in the building, Kurtz says. Just last year, the pie maker expanded its presence in the building by 40,000 square feet.
“We knew Domino’s didn’t want to move because they have a lot of equipment in the building, but there are a lot of vacant buildings available,” Kurtz tells GlobeSt.com. “On one hand, it would have taken a lot of money to duplicate the facility somewhere else. On the other side of the coin, landlords were giving away a lot of TI and free rent, and that could go a long way to recreating it.”
Kurtz adds: “Once we started looking at all the free rent the market was giving away, we had to think hard about where we wanted to price the space. Heller is known for the lowest lease rates in any given market, but a lot of other owners have dropped their rates during this recession.”
Now that Domino’s and Heller have agreed on terms for the three-year renewal, the two organizations continue to negotiate with the goal of working out a deal for seven to 10 years, Kurtz says.
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