Starbucks Corp. will stay put in its approximately 680,200-square-foot suburban Nashville logistics facility in Lebanon, Tenn., courtesy of a lease renewal with landlord Duke Realty Corp. The global coffeehouse chain and beverage retailer will continue to occupy Park 840 East 1009 in its entirety.
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Located at 1009 Hixson Blvd. roughly 20 miles east of downtown Nashville, Park 840 East 1009 sits within Duke’s 158-acre Park 840 East Logistics Center and serves as a distribution gateway to the Southern U.S. Duke developed the facility, which includes roughly 13,800 square feet of office space, in 2013 upon Starbucks’ signing of a 7.5 -year prelease.
“For companies like Starbucks, looking for large distribution space, there are few options in the Nashville market available for immediate occupancy,” Jeff Palmquist, vice president of leasing and development for Duke Realty Corp. in Nashville, told Commercial Property Executive. “This lease renewal allowed the company to remain in the market and maintain its current logistics positioning without skipping a beat or added risk.” Cushman & Wakefield’s Lonnie Russell acted as the listing agent for Park 840 East 1009 and Laura Hart of CBRE represented Starbucks in the lease transaction.
Full house in Nashville
Duke, the only pure-play logistics REIT in the U.S., has a vast footprint in metropolitan Nashville, where its portfolio of owned and managed industrial assets spans 3.6 million square feet and boasts an occupancy level exceeding 99 percent. Most recently, Duke topped off the tenant roster at Park 840 West 14840, located across Interstate 840 from Park 840 East 1009, with an approximately 207,500-square-foot lease with technology company Optoro Inc.
“Nashville is a highly desirable market with proximity to three major thoroughfares that make it an ideal gateway to the Midwest, the West and the South for companies looking to expand their logistics capabilities,” Palmquist said. “However, demand for large industrial space is currently greater than supply, as is evident by our occupancy rate.”
As noted in a report by Cushman & Wakefield, even with pandemic-related shutdowns across the country, there has been very little disruption in Nashville’s industrial market, which recorded more than 1.6 million square feet of leasing activity in the third quarter of 2020 for a year-over-year increase of 3.3 percent. For Duke’s part, Palmquist added, the REIT “will continue to monitor the market and remain vigilant for investment opportunities.”