Avison Young announced today that it has represented Dotcom Distribution (Dotcom) in its lease extension for more than 400,000-square-feet (sf) of 36-foot clear distribution space at 100-400 Nixon Lane in Edison, New Jersey. The four-building, 850,000-sf complex is owned by Prologis, a global leader in logistics real estate, and is strategically located between the New Jersey Turnpike’s exits 9 and 10, just minutes from the state’s ports, which are among the busiest on the East Coast.
Avison Young’s New Jersey-based Industrial Occupier Solutions team, comprised of Ed English, Principal, Paul Errigo, Senior Associate, and Ron Ganter, Principal, provided tenant representation services for Dotcom that also included a conversion from a traditional triple net lease to Prologis’ trademark Clear Lease. This is the fourth time that the team has represented a large tenant (100,000-sf plus) in this type of conversion, and they worked to craft lease terms that were fair to both landlord and tenant. Prologis was represented in-house by Sarah Rutherford, Director, Leasing, and supported by Marc Petrella of KBC Advisors.
“Asking rents in the area for quality distribution real estate have more than tripled in recent years and demand for large blocks of space is particularly strong,” said English. “Dotcom has been creating jobs and contributing to the local economy for more than 20 years, and it was incredibly rewarding to come to an agreement with Prologis that helps to keep their employees, customers, and operations in place.”
The complex transaction, which took more than nine months to complete, helps Dotcom avoid disruption and relocation costs and allows them to seamlessly continue providing the critical storage, e-commerce, and multichannel fulfillment services their customers require. The tenant will maintain its current facility footprint, layout, and infrastructure. In recent years, Prologis has upgraded the premises, including the installation of rooftop solar panels on the buildings occupied by Dotcom.
“From an e-commerce standpoint, there are clear advantages to operating a warehouse close to major East Coast ports, highways, and dense populations of online consumers, but this real estate market is challenging,” said Robert Coon, Chief Commercial Officer, Dotcom Distribution. “We negotiated hard for nine months and did everything we could to keep costs as low as possible given the two adjoining realities: commercial space in this area is unprecedentedly expensive, and it’s worth it for us and for our partner e-commerce brands to be in this strategic location. Avison Young’s Occupier Solutions team supported us throughout the process, Prologis has been very amicable to work with, and we’re happy to have reached a win-win result and continue our tenancy.”