GRAND PRAIRIE, TX-A third party logistics provider has signed two short-term leases totaling 297,000 square feet of industrial space here. The Kansas City, MO-based firm, Wagner Industries, inked the deals at two different properties owned by Heller Industrial Parks Inc.
Wagner Industries renewed its lease for 107,000 square feet at 310 SW 14th St. and 190,000 square feet at 850 West Freeway. The company has been a tenant in the buildings for more than 10 years, according to Fred Kurtz, vice president with Heller. He negotiated the leases, working directly with Wagner representatives.
Kurtz tells GlobeSt.com that Wagner’s leases were due to expire, and Heller wanted to keep the company as a tenant. “In this market, if you have a good paying customer, you can’t be too bold, and if you are bold, you’re doing the wrong thing,” he contends, adding that Wagner’s lease renewals have rental rates that are 5% to 7% less than its previous leases.
The Great Southwest submarket, where Wagner is located, has one of the highest industrial vacancies in the Metroplex. With an industrial inventory of about 13 million square feet in the submarket, the vacancy rate is currently about 17%, Kurtz notes.
“We’re aware of the vacancy in the area, and like any landlord, we don’t like our tenants to test the market,” Kurtz says, pointing out that Heller’s local 1.5 million-square-foot portfolio, is 100% leased.
Heller built both buildings in the 1980s. They are rail-served by Union Pacific Railroad and adjacent to one another. Both facilities are rated for food-grade storage and have ceiling heights as high as 28 feet.
The building located at 850 West Freeway is a single-tenant building, with Wagner the only occupant. The company shares the building located at 310 SW 14th St. with Pollock Paper.
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