Tom C. Smolik, senior vice president of TIG Real Estate Services, says cold calling and hard work landed the tenant for the Viscount Row Distribution Center at 9219 Viscount. Smolik was the sole broker on the deal.
Smolik says Southwest Bindery wanted to buy a state-of-the-art binding machine to expand its Dallas operations, but more space was needed. Its other option was to forego the plan and stay put in the existing industrial site in the same submarket. The corporate decision got somewhat easier when Smolik went knocking on EastGroup's behalf.
"It was a very attractive rental rate that induced them to a 10-year transaction," Smolik tells GlobeSt.com. On the other hand, the building owner was ready to dicker to fill the space standing empty since late last year. EastGroup did what every building owner should be prepared to do, he says. "They took an aggressive position in a challenging market."
Smolik, like others in the business, won't be specific as to how aggressive the deal actually was. EastGroup also pledged to upgrade the 1960s-vintage facility by adding some landscaping and beefing up the cosmetics. According to Cushman & Wakefield of Texas Inc.'s Q2 stats, the submarket is bringing anywhere from $3.34 per sf to $6.65 per sf for industrial space.
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