Falken Tire Leases 301,400 SF for Estimated $12M

ATLANTA-Aurora, CO-based ProLogis Inc. has signed Rancho Cucamonga, CA-based Falken Tire to a 301,440-sf, 10-year build-to-suit distribution center lease valued at an estimated $12 million at Eastgate Business Park in Lebanon, TN.

The lease is one of the largest industrial contracts signed this year in the Southeast, according to GlobeSt.com research.

ProLogis wouldn’t disclose lease terms in a prepared statement. But area brokers tell GlobeSt.com on condition of anonymity, the average rental for class A distribution facilities in the park is between $3.75 per sf and $4.20 per sf. ProLogis also declined to provide construction costs.

Construction of the building will begin next month with completion scheduled for the first quarter of 2003. Falken, which currently leases 250,000-sf from ProLogis at Space Park South in Nashville, TN, will distribute its full line of tires from the new facility to its dealer network east of the Mississippi.

Falken is among the world’s largest suppliers of tires and is the US subsidiary of Ohtsu Tire & Rubber Co. of Osaka, Japan.