company, which had been trying to sell the 670,000-sf property since
February 2016, will keep some of its office space there.
And Slack Technologies has signed on for 230,000 sf on floors
two through 10 of 500 Howard St. According to reports, building
owner Heitman were represented by CBRE SVPs Mark Geis-reiter
and Ken Churich, while Colliers International acted for the tenant. The firm will be consoli-dating its 700 or so local employees
into floors two through 10 of the asset, which is LEED-Gold certified and has an Energy Star rating of 100.
BTS LETS MILLS FLEET STREAMLINE ITS OPERATIONS
In an effort to address its distribution and growth needs, Mills
Fleet Farm signed a 1.13-million-sf long-term lease for a build to
suit in Chippewa Falls, WI. The deal for the state-of-the-art distribution facility, worth $65 million and with $12.3 million in incentives, allowed the company to transform its supply chain.
Avison Young’s Enterprise Solutions team led the 12-month process of site selection, supply-chain analysis and space-optimization.
The firm’s Chicago-based principals, Brendan Kelly and Nick
Esposito, coordinated a team of more than 30 professionals from
Avison Young, Mills Fleet Farm and its owner, investment firm KKR,
along with multiple subject matter experts, to evaluating multiple
locations and determine the tenant’s long-term distribution needs
The project is being built on land purchased and being developed by Minneapolis-based Ryan Cos. Construction on the
70-acre parcel in the Lake Wissota Business Park began in 2017,
with operations expected to be fully underway by spring 2018.
Avison Young’s project management team consisting of VP
Michael Tenuta and assistant project manager Daniel Faczek provided pre-construction project management services and repre-sented the tenant during construction.
NO STOPPING AMAZON’S GROWTH
The e-commerce giant was responsible for most of the biggest
leases signed last year in Seattle, bringing its footprint up by millions of square feet over the course of the year.
Amazon just took 475,000 sf of 300 Pine, the former Macy’s
building, before signing its biggest lease at Wright Runstad & Co.’s
Rainier Square, a redevelopment project Downtown that will be
will be Seattle’s second-tallest building at 58 stories. The firm will
occupy the 722,000 office com-ponent of the $570-million project,
which will also include 200 luxury apartments and some 80,000 sf
of retail space atop seven stories of underground parking.
Amazon also sealed up a deal late in the year for Kilroy Realty’s
333 Dexter. Comprised of 645,000 sf in twin 12-story towers, the
project was designed by the Miller Hull Partnership as an innova-
tive urban office campus on an entire block of the city’s South
Lake Union neighborhood. It’s scheduled for completed in mid-
2019. The JLL team of Lisa Stewart, Cleita Harvey and Joe Gowan
are the leasing agents for the $370-million project.
Further south, Amazon bumped up its San Diego presence when
it took on 107,000 sf at the Campus Pointe office park owned by
Alexandria Real Estate Equities and TIAA Global Asset Management.
The retail powerhouse also made waves on the East Coast, where
it plans to open up a huge New York City office at the Manhattan
West project. It took 360,000 sf on two floors of Brookfield Properties’
5 Manhattan West under a 15-year deal, bringing the 16-story building to nearly full occupancy. The space will serve as the primary New
York location for Amazon Advertising and is expected to create 2,000
jobs. The tenant plans to spend $55 million in improvements to the
space. Amazon potentially created another 2,250 jobs in the outer
borough of Staten Island, where it an-nounced plans for a new
855,000-sf center at the 200-acre Matrix Global Logistics Park.
And in Washington, DC, Amazon Web Services will be using One
Dulles Tower as its East Coast corporate campus, creating as many as
1,500 jobs. The deal is for the Federal Realty Trust’s entire 397,000-sf
asset, located in the Woodland Park development in Herndon.
The e-commerce retailer also expanded its industrial presence,
thanks to a variety of incentives and grants from officials in markets throughout the country. It made plans for its ninth fulfillment cen-ter in California, pre-leasing more than one million sf
at 4950 Goodman Way in the Inland Empire. The facility is
located within the Goodman Group’s 205-acre mixed-use
Goodman Commerce Center in Eastvale and Amazon is expected
to take start working in its new digs this year.
Incidentally, Goodman also secured a 16-acre ground lease with
Costco at Goodman Commerce Center Eastvale, where the wholesale retailer will build a 152,000-sf warehouse with station slated to
open later this year. CBRE’s Brian McDonald and NWAP’s Steve
McArthur from NWAP act-ed for Costco. Nelson Wheeler and Jim
Clarkson of Strategic Retail Advisors served as Good-man’s agents.
In the Romulus, MI, Amazon signed on to an 856,000-sf
regional distribution center near the De-troit Metro Airport.
Valued at more than $140 million and expected to create 1,600
jobs, the facility is part of the 1,000-acre Metro World Commerce
Center, owned by an entity of Prudential. Else-where in the