TriMark signs 120K sf long-term lease in Brisbane

TriMark has signed a new lease extending and expanding on its current 90,000-square-foot industrial footprint in Brisbane. The new lease is for seven years and will make the country’s largest food service equipment dealer into the sold occupant of a 120,000-square-foot warehouse next spring, according to listing agent Joe Harney of Reliance Real Estate Advisors.

Financial terms of the lease were not disclosed.

Harney said TriMark subsidiary R.W. Smith and Co. is currently in the middle of a two-year extension at 325 Valley Drive. The company originally wanted to extend for another two years, but “came around” and made a “good commitment” after two other parties showed interest in renting the warehouse space, which has 15 truck docks, plus nearly 80 parking spaces and outdoor storage on an almost 5-acre lot. TriMark acquired the San Diego-based food service supplier and distributor in June 2016.

Jason Cranston at JLL represented the tenant on the extended and expanded lease, which will begin in March 2024. The “open communication” between the ownership team and his client during the negotiations “resulted in a very fair outcome,” Cranston said in an emailed statement. 

The landlord, Valley 325 LP, offered no incentives for the “market-rate” deal, Harney said, which is an indication of the current lack of inventory for large industrial spaces with parking on the Peninsula and in San Francisco, even as the office market continues to put up bigger vacancy numbers.

“This is a great example of the strength of Class A warehouses in an overall weakening commercial real estate market,” Harney said, pointing to other big Brisbane deals with tenants such as DHL and AT&T in the last year. “I firmly believe last-mile distribution centers will continue to outperform the market.”

A first-quarter 2023 report from Yardi shows that Bay Area industrial space was up to an average rent of $12.24 per square foot in February 2023, more than 7 percent higher than the same time last year and slightly higher than the national industrial increase in the same time frame. The average signed rent in the last 12 months was even higher at nearly $13.50, compared to about $9 nationally.