Hearth Manufacturer Inks 476,000-SF Industrial Lease Worth $19.2M

MUKILTEO, WA-Growing hearth manufacturer Travis Industries has signed a 12-year, $19.2-million lease for Centre 41, a 476,000-sf industrial building at Harbour Pointe in Mukilteo that is owned by The Boeing Co.

For the last 24 years, Travis has operated out of five separate facilities totaling 250,000 sf in the Seattle-area cities of Totem Lake and Woodinville, WA. The relocation to a single facility with twice as much space will allow Travis to consolidate its manufacturing, research and development, marketing and administrative operations into a single location while also accommodating its expected growth from $70-million in sales to $150 million in sales over the next five years.

The company’s new headquarters is located at 4800 Harbour Pointe Boulevard in Mukilteo, WA. The 12-year lease includes two five-year extension options. Based on the numbers provided by the parties involved, the average lease rate over the life of the initial term is $3.50 per sf per year, which is as much as $1.00 per sf less than the asking rate for other large industrial buildings in the same area, including at least one other building at Harbour Pointe. “Even at the end of the lease term, we will still be paying less (per sf) than we are paying now,” a source at Travis tells GlobeSt.com.

The source adds that the lease agreement includes a significant tenant improvement allowance, but that Travis will still have to supplement it in order to add dock-high doors, office space and a formal entrance to the building. As soon as the dock-high doors are in, expected in August, the source says Travis will relocate its Woodinville operation to the facility. The rest will follow as the formal entrance and office space is completed.

Chris Langer and Paul Jerue of the Broderick Group represented Travis Industries in the transaction and Richard Peterson and Darrell Okada of Puget Sound Properties represented Boeing.