Swedish multinational home appliance manufacturer Electrolux has leased a big new industrial building in Lakewood, Pierce County.
Reno, Nevada-based Dermody Properties this week announced it leased the 210,700-square-foot building to an international appliance manufacturer, but declined to name the tenant.
Electrolux confirmed itself as the tenant Thursday.
"We are committed to growing our North American appliance business and are pleased to be expanding in the area," spokeswoman Eloise Hale wrote in an email.
The 98-year-old manufacturer of vacuums and kitchen and laundry appliances is one of the world's largest appliance makers by units sold.
Electrolux signed a 5.5-year lease, receiving six months' free rent, according to a commercial real estate industry source with knowledge of the deal. The source, who requested anonymity while discussing other companies' business, added that Electrolux is paying 45 cents per square foot a year for the industrial space and $1.45 per square foot for a small amount of office space. Rents will increase by 3 percent each year.
Phillip Wood, a partner at Dermody's Northwest region office in Bellevue, said he could not confirm details of the lease.
Known as LogistiCenter at I-5, the facility is half a mile from the intersection of Interstate 5 and Highway 512. The building will be a warehousing and distribution center, Wood said.
Privately-owned Dermody broke ground on LogistiCenter a year ago. The lease-up speaks to the strength of the Pierce County industrial market.
Pierce leads the way in the amount of space both being developed and leased, according to commercial real estate company Kidder Mathews, which reports that 10 buildings totaling nearly 4.1 million square feet are being built.
Meanwhile, the market absorbed, or leased, 802,500 square feet of space during the third quarter and nearly 2.6 million square feet through the first nine months of the year.
The absorption of space is outpacing delivery of new products, causing the Pierce County market's industrial vacancy rate to decline from 4.25 percent to just under 3.5 percent. Other markets haven't been as successful and regionwide the vacancy rate creeped up slightly to 3.3 percent, according to Kidder.
Brokers Les Boudwin, Scott Carter, Chris Spofford and Casey Trees of JLL represented Dermody in the transaction. Andrew Hitchcock of CBRE represented the tenant.
For the full story, visit: Puget Sound Business Journal
© 2017 American City Business Journals. All rights reserved