Sunday, February 04, 2007

LG Electronics Signs Long Term Lease for 750,000-SF Distribution Center in NJ

Commercial Property News - February 2, 2007

In one of New Jersey's biggest single industrial leasing deals in the last 12 months, distribution facilities provider ProLogis has signed on LG Electronics Inc. to occupy a 740,000-square-foot building in South Brunswick. The Central New Jersey warehouse (pictured) will serve as a northeast distribution center for LG products.

Sited off Interchange 8A of the New Jersey Turnpike, LG's new building was developed by ProLogis in 2005. The warehouse boasts a location with easy access to the bustling Port of New York/New Jersey and Newark Liberty International Airport.

Trammell Crow Co. represented LG in the lease transaction, while ProLogis relied on internal representation. Specific terms of the triple net lease were not disclosed; however, the fourth quarter average asking rate for industrial space in the 8A submarket was $4.89 per square-foot, triple net, as per a report by real estate services firm Colliers Houston & Co.

For LG Electronics, the lease allows the company to consolidate two facilities under one roof, and to expand its total square footage in the market. As for the length of the lease, Loosmann described it as a "commitment by LG to the Central New Jersey market on a long-term basis." Sphere: Related Content

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