C&W Brokers 300,000-Sq.-Ft. Distribution Lease for DYK Automotive in Memphis
Memphis, TN, November 2, 2015 (Newswire.com) - In a Cushman & Wakefield-brokered lease renewal and expansion, DYK Automotive has doubled its distribution operation at 4500 Malone Road in Memphis. The resulting, 316,666-square-foot transaction reflects a notable increase in Class A industrial activity in the regional market, according to Kemp Conrad, SIOR, principal of Cushman & Wakefield-Commercial Advisors, LLC.
DYK Automotive, a national aftermarket automobile parts and accessories distributor, initially leased 150,000 square feet at 4500 Malone Road. Based in Memphis and an operating unit of Dobbs Management Service, the company provides branded and private label packaged oil, chemicals, parts and accessories to various customer channels and markets. Its divisions include AP Auto, Keltner Enterprises and Superior Automotive; each has more than 50 years of successful operating history.
"Our region is on track for one of the best years in recent history. Memphis benefits from a balanced user base, and warehouse/distribution activity continues to involve diverse industries, from consumer goods and pharmaceuticals, to e-commerce and third-party logistics."
Kemp Conrad, SIOR, principal, Cushman & Wakefield-Commercial Advisors, LLC
Conrad orchestrated DYK Automotive’s recent renewal/expansion. Tim Mashburn with Colliers represented the property owner.
Conrad noted that the Memphis industrial market is seeing strong demand leading into the final months of 2015. “Our region is on track for one of the best years in recent history,” he said. “Memphis benefits from a balanced user base, and warehouse/distribution activity continues to involve diverse industries, from consumer goods and pharmaceuticals, to e-commerce and third-party logistics.”
In fact, at mid-year the Memphis industrial market had recorded 4.4 million square feet of positive absorption – surpassing 2014 and putting it on track to meet or exceed the 6.0 million mark last seen in 2006. “Tenants leased 6.6 million square feet of industrial space in Memphis during the first half of 2015 – a 44.0 percent increase over the 2014 quarterly average,” Conrad said. “We currently are tracking demand for approximately 25 users looking in the market for warehouse space greater than 100,000 square feet, half of which are looking for more than 500,000 square feet. In general, we are seeing a flight to quality, with a significant percentage of these deals involving Class A accommodations.”
Cushman & Wakefield’s industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2014 globally, this group completed more than 8,200 industrial lease and sale transactions, including Capital Markets transactions, totaling nearly 337 million square feet with an aggregate value in excess of $16.8 billion.
The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.
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About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.