CATERPILLAR logistics operation entered a 5 year lease for a BTS building at Nexxus Ind. Park in 2016. The owners sold the building to FibraMTY (REIT) as part of an industrial portfolio sale in 2020. The initial lease terminates in 2021 NAI Mexico team is engaged for representation and negotiations with the new owner.
- The 200,000 SF facility is located adjacent to CAT’s manufacturing operation, and its location proximate to the other facility is critical.
- CAT engaged NAI Mexico to assess options, recommend alternative strategies, and improve the economic and qualitative terms of the lease. These include negotiating improvements and expansions to the building, prior to executing its option to renew.
- Original lease included some “above standard tenant improvements” and the current lease rate has escalated above fair market for similar condition buildings.
- When NAI was engaged, the current “option to renew” was nearing expiration, and the new owner was more conservative than the previous landlord.
- With the site location critical for CAT’s operation, potential leverage to create competition and negotiate improved terms, was reduced. And the market is currently a “landlord’s market.”