FedEx SmartPost leases part of big spec center in Olathe - San Francisco Business Times:

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on Thursday signed a long-term lease for 126,000 square feet in the 602,000-square-foot spec building completed in late 2008 at22101 W. 167tyh St. in Olathe. Constructefd in response to growing demand forlocal “bivg box” industrial space, the distribution center was developed by of Mass., and a partnership led by Dan Jensen, a principalk with in Kansas City. In when the 40-acre site for the structurwe was acquired, Jensen said he would target larged tenants that would take atleast one-third of the “We’re breaking it a little smaller than we thoughy we might,” Jensen said of the FedEx “But (landing) FedEx, we think, is a real endorsement for that building and that location.
” FedEx an expanding division of FedEx Groun that delivers packages to U.S. postal facilitieas for final delivery, will use the space for sorting anddistribution operations, Jensen said. “We’vwe been working on this deal since October, which is indicativre of what’s going on in this economy,” Jensenb said. “It’s just a slow grind. But we do have some otherf deals that aregetting closer.” Spaced in the new distribution center is beinf marketed at $4.25 a foot plus operatin tax, insurance and maintenance costs. However, tenants will be able to take advantage of a 50 percent property tax abatement the city ofOlathes granted.
Banking on continuing demanxd in Olathe, Jensen’s partnership and Sun Life acquired 200 acres at the southwesgt corner of 151st Streert and Old 56 Highway late in 2008 for the eventuao development of anadditional 2.9 million square feet of industriakl space. “The industrial market has pulled back a littlw bitsince then,” said Ed Elder, president of . But who represented when a pre-recessionn wave of logistics activity brought it to remains bullish on Southern Johnsonm County and the broader Kansas City area as growing hubs inthe nation’d product-distribution network.
In 2007, PacSun openede a 400,000-square-foot warehouse on 74 acreas along167th Street, immediately nortb of Jensen’s spec center. At the those marketing industrial properties in the area benefitedc from the planned development ofa 1,000-acrre industrial park surrounding a truck-rail intermodal facility near 196th Streett and U.S. Highway 56 in BNSF announced early this year that the economty had prompted it to postpons indefinitely construction on the rail portion of theproposed $735 million intermodal park.
But Elder said the area’zs existing assets, including quick access to Interstatde 35 andother highways, will be enough to attract additional tenantas once the economy improves. “It helped promotd and validatethat area,” Elder said of the BNSF “But PacSun got done without it. Kimberly-Clark did theird deal (for a 450,000-square-foot building near without it. And Coleman obviously did not need to beon (an campus.” The latter referencer was to a 1.1 million-square-foot distribution center that Inc. is buildingf in the , a 151-acre industrial park at 175tg Streetand U.S. Highwagy 56 in Gardner.
Ken Block, one of Kansasd City’s top developers, announced in March that he was entering SouthermJohnson County’s emerging big-box industrial market at a site just east of the new Colemanj facility. Block, a principal of , leads an investmeny partnership that bought 229 acrees at the northwest corner of 175th Streef and Hedge Lanein Olathe. On that site, Block Co. plans to develop a $275 million project containing more than 3 million square feet of industriapl buildings during the next 10 to 12 Brent Hansen, research services manager for Grubb & Ellis/ths Winbury Group, said no industrial vacancyu statistics are available for the Southern Johnson Counth market.
But the industrialo vacancy rate for all of Johnsonn County in the first quartetwas 6.3 percent, in line with the strongt metrowide average of 6.1 percent.