- Delivered a 75,000 SF build-to-suit warehouse solution for a national manufacturing and distribution client.
- Consolidated operations from three inefficient facilities into one modern distribution center.
- Doubled pallet capacity and improved inventory expansion, material handling, and truck operations.
- Relocated operations into a stronger regional distribution corridor with superior market access.
- Managed site selection, design coordination, budgeting, negotiations, and long-term lease execution.
Introduction
National distribution facility solution planning led the Choyce Peterson National Accounts Team to deliver a new 75,000 SF build-to-suit warehouse for a national manufacturing and distribution client following a multi-year search process. Our team successfully concluded a multi-year search and determined that the only viable solution which met the client’s requirements was to design a facility for a build-to-suit leaseback. Thereafter, this project involved confidentially developing multiple build packages on a few select sites, then working with the local and regional client team to simultaneously develop the site/building specifications/bid package plus the project authorization request detail for senior management’s approval. Ultimately the result was a newly constructed warehouse/distribution facility that was one of the most significantly upgraded operations in the client’s extensive national holdings. This project again demonstrated the team’s expertise in complex logistics, negotiation, and construction management while delivering a long-term solution.
Lease Details
- Tenant Broker: Alan Peterson, Choyce Peterson, Inc.
- Asset Class: Warehouse
- Square Footage Leased: 75,000 SF
- Occupancy Status: Fully Leased
Property Summary
- Address: South Bend, IN
- Building Type: Warehouse
This facility replaced a poorly laid out, site constrained, congested facility in need a significant infrastructure improvements that were impossible to achieve in the old facilities. The new facility overcame all the inefficiencies without disruption making it highly functional for regional and national distribution.
National Distribution Facility Solution Improved Operational Performance
This national distribution facility solution replaced an inefficient operation spread across three separate buildings with a consolidated warehouse designed to meet evolving corporate standards for safety, material handling, and distribution activity. The leasing strategy focused on:
- working with the local and regional client team to understand any idiosyncrasies of distributing in the local market;
- designing a facility that met all the vastly improved client standards for safety, and material handling operations; and
- project cost development of site and building specifications and bid coordination before final developer selection and build-to-suit long term lease negotiation.
Thereafter the team expertly managed a multi-phase project of design and cost/change order control, with timing and completion targets. By securing a long-term lease and advantageous long-term renewal options, the Choyce Peterson team provided the client with a long term solution to what had previously been an operation considerably below the corporation’s standards.
Conclusion
This successful project underscores the capabilities of the Choyce Peterson National Accounts Team to understand the culture and standards of a national distribution firm, recognize when facilities may exist that don’t meet those standards, and assist the client in delivering a solution that is uniformly celebrated throughout the company. By delivering a larger, better located, new warehouse, the team not only met but exceeded our client’s operational and financial objectives and cements best-in-class distribution capabilities across the market.
Frequently Asked Questions (FAQs)
What are the key features of this industrial space?
The facility offers a vastly improved, large central location, and state-of-the-art warehouse elements regarding ceiling height, lighting, aisle width, truck parking, dock equipment, and site work all of which are better suited for high volume distribution activity.
What type of tenant leased the space?
A national distribution client, requiring long-term occupancy, operational efficiency and great delivery access to the region.
Why was this location attractive to the tenant?
Centrally located within the delivery territory and clearly demonstrating the corporate standard of suppling field operations with the tools and facility environment to succeed.
Were any buildouts or custom improvements part of the deal?
Yes, a 4-to-1 land to building ratio and very good interstate access was a factor that significantly limited available land options.
