The Springfield-area industrial real estate market got a shot in the arm during the third quarter, according to Xceligent’s most recent Market Trends report released yesterday.
Ohio-based manufacturer Buckhorn Inc. leased a
$2.4 million, 70,000-square-foot speculative warehouse developed by Mustard Way LLC at 4525 E. Mustard Way. The space was listed by Dave Murray of R.B. Murray Co. for $4.35 per square foot.
Murray said this morning Buckhorn closed on the lease in March for undisclosed terms and moved in during August. Just north of Partnership Industrial Center, the building is about a half-mile away from Buckhorn’s 227,000-square-foot plant inside PIC. Buckhorn also has around 120,000 square feet at the former Solo Cup building.
“Buckhorn’s been a long-term client of the firm. We were aware of their needs,” Murray said, noting the reusable packaging and material handling products manufacturer is using it for storage. “The idea was if we could present a building that met their requirements, it was hopeful they would lease it.”
Designed by R.E. Werner Architect LLC, the spec facility built by Rich Kramer Construction Inc. could have accommodated multiple tenants, which Murray said has been rare in recent years for industrial buildings of its size. However, Buckhorn decided to lease the entire space from Mustard Way LLC, a group of investors formed by R.B. Murray for the development. R.B. Murray itself is not one of the investors, Murray said.
Buckhorn spokeswoman Toni Soale said the decision to lease the property came down to an adjustment of warehouse space based on inventory requirements.
“We adjust based on how we can better support our customers and operational efficiencies,” she said. “Springfield is the hub of where we manufacture the majority of our products.”
Immediately adjacent to the property,
Hogan Truck Leasing Inc. is building a $2.8 million commercial truck repair and office building.
Buckhorn’s move contributed to the Springfield area’s industrial vacancy rate dropping to 4.3 percent in the third quarter from 5.8 percent a year earlier.
Also in the Xceligent report, the most space vacated during the third quarter occurred in the office sector.
UnitedHealthcare moved out of 48,708 square feet at 1930 W. Bennett St., the majority of the space at a 65,000-square-foot building owned by Warren Davis Properties, according to Xceligent. The
company announced in January it would exit the building ahead of its Aug. 31 lease expiration.
