As published in Toledo Business Journal - June 1, 2016
A concrete building which Spyker Contracting, Inc., says is similar
to that being constructed on Elliot Road in Defiance
Spec building planned
for Defiance
Fort Winchester Investment Partners, LLC, a group of local investors hoping to further economic development in Defiance, are planning a 100,000 square foot spec building on Elliot Road scheduled to begin construction in April.
Bryan Keller, president of Keller Logistics Group and a member of Fort Winchester Investment Partners, LLC, said that the architect for this project is locally-based Spyker Contracting, Inc. He did not disclose the amount of investment or any details about the investment group, but said the building was expected to be complete by October.
“We decided to build a new spec building because there’s not sufficient inventory in the area for new business development,” he said. “We know that in order to get new industry in Defiance, Ohio, we’ve got to put a building up to attract that industry. There are people all over northwest Ohio and the United States who will build a building for someone who has guaranteed purchase. However, business doesn’t work that way. They go to what’s available to move into.”
“It’s all very preliminary, and this is the inherent problem with our industrial inventory,” said Reichle Klein Group’s Lynette Reichle, SIOR, exclusive listing agent for this project. “Companies generally don’t want to consider a build-to-suit because there’s a lot of risk inherent in that, and expense. There’s a lot of unknowns with a new construction, and a lot of times companies want to make a decision and occupy well before any build-to-suit can be complete, so having a spec construction available takes the risk out of that for the tenant and creates a much more likely scenario that the tenant is going to execute on the building.”
Overhead view of site
(Source: Reichle Klein Group)
Reichle described demand for industrial space in northwest Ohio as strong with steady growth. There are two potential clients interested in using this facility for manufacturing space, which would bring new jobs to the area.
“We cast a pretty broad net,” she said. “We had identified manufacturing as the preferred tenant of that property: anything from food manufacturing, to automotive, to kitting. Any value added type operation is what is preferred, so we’re casting a broad net and seeing what comes in.”
There is potential to subdivide the space available, but the minimum the owners will consider is 50,000 square feet, according to Reichle. The asking triple-net rate (NNN) – which includes taxes, utilities, and insurance – is $3.95 / square foot with a minimum three-year lease. The building is also available for sale.
There is room on the land to expand the building up to 400,000 square feet, and it is being designed so as to add on to very easily, according to Keller. The building will also feature 32-foot eaves, 10 dock doors, two large overhead doors, and truck parking. It is a quarter mile away from the US 24 and Ohio State Route 281 interchange.
