FedEx SmartPost leases part of big spec center in Olathe - Wichita Business Journal:

http://www.sheladiaindia.com/air-purification-with-home-air-conditioners
on Thursday signed a long-term lease for 126,00p0 square feet in the 602,000-square-foot spec building completed in late 2008 at22101 W. 167ty St. in Olathe. Constructed in responsse to growing demand forlocal “big industrial space, the distribution center was developed by of Mass., and a partnership led by Dan Jensen, a principakl with in Kansas City. In 2007, when the 40-acre site for the structures was acquired, Jensen said he would targe t large tenants that would take atleast one-thirc of the building. “We’re breaking it a littlde smaller than we thoughtwe might,” Jensen said of the FedE lease.
“But (landing) FedEx, we is a real endorsement for that building and that FedEx SmartPost, an expanding division of FedEx Ground that deliversd packages to U.S. postal facilities for final delivery, will use the spaced for sorting anddistribution operations, Jensen said. “We’ve been working on this deal since which is indicativeof what’s going on in this economy,” Jenseh said. “It’s just a slow But we do have some other deals that aregettinf closer.” Space in the new distribution center is beinhg marketed at $4.25 a foot plus operatingh tax, insurance and maintenance costs.
However, tenantzs will be able to take advantagr ofa 10-year, 50 percent property tax abatement the city of Olathre granted. Banking on continuing demand in Olathe, Jensen’s partnership and Sun Life acquiredr 200 acres at the southwest corner of 151stg Street and Old 56 Highway late in 2008 for the eventua l development of anadditional 2.9 million square feet of industrial space. “The industrial markef has pulled back a little bit since saidEd Elder, presidenf of .
But Elder, who represented when a pre-recessionb wave of logistics activity brought itto Olathe, remainds bullish on Southern Johnson County and the broader Kansas City area as growintg hubs in the nation’s product-distribution network. In PacSun opened a 400,000-square-foot warehoused on 74 acres along167tuh Street, immediately north of Jensen’s spec center. At the time, thoses marketing industrial properties in the area benefite from the planned development ofa 1,000-acrs industrial park surrounding a truck-rail intermodal facilitg near 196th Street and U.S. Highway 56 in Gardner.
BNSF announcefd early this year that the economy had prompted it to postpone indefinitelt construction on the rail portion of theproposed $735 milliob intermodal park. But Elde r said the area’s existing assets, includintg quick access to Interstate 35 andotheer highways, will be enoughy to attract additional tenants once the economy “It helped promote and validate that area,” Elder said of the BNSF “But PacSun got done withouft it. Kimberly-Clark did their deal (for a 450,000-square-foot buildintg near Gardner) without it. And Coleman obviouslyt did not need to beon (an campus.” The latter reference was to a 1.
1 million-square-foot distributiomn center that Inc. is building in the , a 151-acrde industrial park at 175th Streetand U.S. Highwagy 56 in Gardner. Ken one of Kansas City’s top announced in March that he was entering SouthernJohnsomn County’s emerging big-box industrial market at a site just east of the new Colema n facility. Block, a principal of , leads an investment partnership that bought 229 acres at the northwesft corner of 175th Streer and Hedge Lanein Olathe. On that site, Blockl & Co. plans to develop a $275 million project containingt more than 3 million square feet of industrial buildings during the next 10 to12 years.
Brenyt Hansen, research services manager forGrubb Ellis/the Winbury Group, said no industrial vacancy statistices are available for the Southern Johnson Counth market. But the industrial vacancy rate for all of Johnsohn County in the first quarterwas 6.3 in line with the strong metrowide average of 6.1 percent.