A rendering of Design Within Reach's e-commerce building at the South Afton Industrial Park in Williamsburg Township, OH.

CINCINNATI— Furniture and home accessories company Design Within Reach has signed a long-term lease with Duke Realty for a 617,760-square-foot industrial build-to-suit project here.

The deal will have Stamford, CT-based Design Within Reach occupying the entire e-commerce and omni-channel distribution facility being built in the South Afton Industrial Park in Williamsburg Township, OH. The property is located just off Half Acre Road at S.R. 32 and within a short drive of I-75, I-71, I-275 and I-77. The building is expected to be completed in early 2019.

A Newmark Knight Frank team comprised of executive managing director Geoffrey Kasselman, SIOR, LEED AP; EVP and managing director James Ritman; executive managing director Si Pitstick, SIOR; senior managing director Josh Young, SIOR; senior managing director Tim Brogan and senior managing director Steve Bonge represented DWR in the transaction. NKF also reports it provided important labor analytics and incentives guidance and arranged for architecture firm Ware Malcomb to design the exterior ground-up construction and interior improvements.

The facility, being built on a 46-acre site, will replace two existing warehouses in Hebron, KY, which DWR has outgrown. NKF helped DWR secure the second Hebron warehouse in 2017 to alleviate growth pains on a temporary basis, while arranging the South Afton space as a long-term solution. As part of the project, NKF also restructured the two Hebron leases to coincide with the delivery of the new build-to-suit facility.

“We're thrilled to have found and helped to craft the optimal distribution and fulfillment solution for Design Within Reach that meets all of its dynamic specifications,” says NKF's Kasselman. “DWR's need for such e-commerce space is a true testament to the growth of the company, and we're happy to partner with them yet again to secure a significant state-of-the-art omni-channel distribution center to support its current needs, help drive further growth and ultimately, to propel the brand forward.”

Newmark Knight Frank previously represented Design Within Reach when it relocated its corporate headquarters from San Francisco to Stamford, CT in 2010.

“We couldn't be more excited about the facility staying in the greater Cincinnati-area,” DWR president John McPhee says of the build-to-suit deal. “This facility gives us the ability to service our existing demand as well as accommodate our future expansion plans.”

Negotiations between Duke and DWR included all facets of building and systems design, accelerated delivery with a compressed construction schedule, and an allowance for an additional 112,320-square-foot expansion to the facility. The precast building will feature 36-foot clear ceilings, a cross-dock design, ESFR sprinklers and 12,000 square feet of office space that will include many unique on-site employee amenities. DWR will employ approximately 75 people on a full-time basis at the facility when it is operational.

Indianapolis-based Duke Realty announced yesterday that the industrial REIT's Cincinnati office posted total leasing volume of 1,387,350 square feet for the first six months of 2018. After a strong first quarter, the firm's Cincinnati office added another 588,447 square feet in leases between April and the end of June.

“Demand for space in our industrial properties throughout the Cincinnati-metro area remains strong largely due to the location and quality of our buildings,” said Dan Colletto, VP of leasing and development for Duke Realty in Cincinnati.

Also on Monday, Browning/Duke Realty, a joint venture between the two Indianapolis-based commercial real estate developers, reported it had enjoyed robust activity during the first half of the year in their AllPoints Midwest and AllPoints at Anson industrial developments located in Plainfield and Whitestown, IN, respectively. Browning/Duke Realty registered 783,892 square feet of new leases and the start of four new industrial buildings.

Leases signed in the first six months of 2018 brought three AllPoints at Anson buildings to 100% occupancy and filled more than half of another building in the industrial park. New developments include one build-to-suit project and one 100% preleased building, the company reported.