Darby Group leases 150,000 SF of warehouse/distribution space.
Situation
Darby Group Companies, Inc. ("Darby") is one of America's leading, full-service distributors of medical, dental, and veterinary supplies, as well as dental laboratory equipment, and pharmaceutical products and services. Due to surrounding development, the property on which their Long Island warehouse/distribution center was located experienced a value improvement from industrial to retail. With numerous big box stores bidding on the property Darby thought it a good time to sell and relocate their distribution center to the Albany area. Albany ’s strategic location features three interstate highways, rail service only 2 hours and 15 minutes from New York City, a year round deep water port, and an International airport with direct air service to all major markets. These transport systems provide convenient and efficient access to the markets of the Northeastern United States and Canada. Referred to us through a partner in Memphis, TN the immediate challenge was that the 150,000 SF of contiguous warehouse space Darby required is atypical in the Albany market.
Process
After conducting a market survey we discovered no availabilities for a building that met the needs of the Darby Group and a build to suit solution was not an option. Through our market knowledge we were familiar with an industrial property that was precisely 150,000 SF however 100,000 SF of the building had already been tagged with two separate 50,000 SF Letters of Intent. After discussions with the property owner it was revealed that the he would consider moving these two companies to an adjacent property that had been approved for a similar, but yet to be constructed, building. We conducted a lease vs. lease analysis as well as an Employee and Demographic Wage study and we negotiated the best possible lease for Darby who moved into the property soon thereafter.
Result
Our detailed analysis, market knowledge and wage study resulted in Darby occupying 150,000 SF of newly constructed Industrial space and approximately 100 new jobs for the local work force.