Build-To-Suit Demand Despite Spec Availability
While leasing activity is up, CBRE's Pat Feeney is seeing real surge in industrial build-to-suit activity. (Burger King has brainwashed us all into believing we can "have it our way.") And that's despite some eight spec warehouses built since 2012. “Right now, if you're a 300k SF user, you have about eight alternatives,” Pat says. (The most recent build-to-suit was Dick's Sporting Goods.) But Pat says with the recent addition to Apple's 1.4M SF manufacturing facility and State Farm's announcement of a 2M SF corporate campus, there are other companies saying, "Maybe we need to be there."
Pat is fresh from his 90k SF deal with an electrical part distributor from San Carlos at 4707 E Baseline Rd (above), brokering the deal on behalf of landlord Dalfen America with colleagues Dan Calihan, Rusty Kennedy, Mike Parker, and Evan Koplan. (Mike and Evan also repped the tenant along with CBRE’s Pete Wentis and Kevin Cosca.) Pat, Dan and Rusty also recently helped sell the 400k SF, vacant distribution center at 1635 S 43rd Ave for more than $21M. Cohen Asset Management picked up the spec warehouse as part of a 1031 exchange.
