IAMC News Briefs—Week of May 8 2023
By John Salustri
TRANSPORT DIVE—Knight-Swift Transportation Holdings has 11 new LTL terminals in its future. As the website reported, new terminals will come online in the near term for “Midwest Motor Express, serving Kansas, Idaho, the Iowa-Illinois border, Nebraska and Wisconsin; and for AAA Cooper Transportation in Indiana, Michigan, South Carolina and Texas.” The additions are the continuation of a two-year process the firm has been undergoing to expand its LTL assets.
IAMC CORNERSTONE—Average asking rates rose in the first quarter, says a new report from JLL. In fact, they’re up 20.6% year over year, to $9.19 per square foot. But property owners might be wise not to get too far ahead of themselves if softening leasing trends continue. JLL says that Q1 volume dropped 16.3%, and more than 60% of those were new-market deals, “indicating companies are strategically expanding or establishing operations in markets that benefit their goals.” Currently there’s 620.5 million square feet in the construction pipeline, but new starts are expected to be impacted by rising interest rates and the cost of capital. Also, pre-leasing will remain relatively flat “amidst increasingly stiff economic headwinds.”
TESLA OWNERS ONLINE—Tesla has signed for a massive, 245,619-square-foot warehouse in Marysville, WA, some 30 miles outside Seattle. The lease is for the first finished facility in the as-yet unfinished Cascade Industrial Center, which upon completion will encompass 5.1 million square feet. The Tesla asset offers 3,600 feet of retail, 36-foot clear heights and more than 300 spaces for trailer and car parking.
PENSKE NEWSROOM—Penske Truck Leasing has reached an agreement to acquire Star Truck Rentals, which operates more than 1,900 vehicles from 18 locations throughout Michigan and Indiana. The acquired firm’s Midwest scale was a major attraction for Penske, as Art Vallely, president of Penske Truck Leasing, indicated in a statement: “We look forward to integrating Star into the Penske brand and leveraging the best both companies have to offer to serve new and existing customers in the region.”
COMMERCIAL PROPERTY EXECUTIVE—Gilbert, AZ, has a new industrial tenant in Urban Outfitters, which has signed for 130,000 square feet there. The retailer will use its space in Warner Commons, in the largest of four newly built buildings, to service its Phoenix-area retail locations. The lease gives the firm 32-foot clear heights and parking for 321 vehicles. Lee & Associates brokered the deal for Warner owner Petsas Commercial, while Colliers spoke for the retailer.