VOL. 129 | NO. 105 | Friday, May 30, 2014
FedEx Seeks Office Space as Needs Shift
By Amos Maki
FedEx Corp. is currently looking for 25,000 square feet of office space in the Memphis market, according to several real estate brokers.
FedEx’s latest request for information about office space comes just a few weeks after the Memphis-based shipping company acknowledged it was not renewing a large block of space it occupied at Lenox Park.
Earlier this month FedEx said FedEx Express would not renew the roughly 75,000 square feet it occupies on floors two through four in Building B at Lenox Park. The leases are set to expire at the end of June.
At the time, FedEx said that decision was based on a desire to consolidate and move employees to the company’s headquarters.
Because of the company’s local stature – as one of the Memphis area’s biggest employers and largest office tenants, any decision the company makes will have a large impact on the local market – real estate professionals have said for months that they would be closely watching FedEx’s decision-making process.
According to numbers compiled by commercial real estate brokers, FedEx and its subsidiaries lease around 328,896 square feet of office space in the Memphis area. The 75,000 square feet FedEx Express is vacating at Lenox Park represents nearly one-fourth of the company’s total leased space.
FedEx and several other companies with a significant office presence in Memphis, including Raymond James Financial Inc., are facing leasing deadlines over the next 12-24 months.
Those deadlines are approaching as several factors – smaller staffs in the aftermath of the recession and a move toward more collaborative office space – have combined to lead companies to require a smaller overall office footprint.
In other news, Brim’s Snack Foods is leasing 24,000 square feet of warehouse space to help with the distribution of the company’s tasty treats in the Memphis area.
Brim’s inked the lease at 2950 Brother Blvd. in the Northeast submarket and will use the space primarily for Brim’s route sales operations that service grocery and convenience stores in a 100-mile radius of Memphis.
Brimhall Foods Co. Inc., which began in 1979 as a one-truck direct store delivery distributor, currently operates in a 77,000-square-foot manufacturing facility on five acres inside Bartlett Industrial Park. It distributes potato chips, tortilla chips and other snack food items, including the company’s popular pork rinds and pork cracklings.
Terry Brimhall, founder and president of Brimhall Foods, and his wife, Becki, began producing pork rinds in 1982 in a former ham house on U.S. 70. Last May the company reported having 140 employees across the Southeast.
James Rainer and Greg deWitt of Newmark Grubb Memphis represented the landlord, Two Nine Five Zero LLC, in the transaction.
East Pointe Business Center has seen recent leasing activity.
Work Force recently leased 3,368 square feet and Tri-Wire leased 4,518 square feet at East Pointe. East Pointe is a Class B park with seven buildings across 287,482 square feet of flex space located along Mendenhall Road near East Raines Road.
Conner Walker with Commercial Advisors/ Cushman & Wakefield represented the landlord, The Simpson Org., on both transactions. Bobby Daush with CB Richard Ellis Memphis represented Tri-Wire in its lease.