SLM-IQ Signs Lease for US Location

HOUSTON-After investigating a variety of options, Canadian electronics liquidator SLM-IQ Logistics Inc. has taken 27,401 square feet in the World Houston International Business Center. SLM-IQ signed a five-year lease with EastGroup Properties for space in the 129,151-square-foot World Houston 11, and will move in this week.

NAI Houston senior associate Chris Kugel tells GlobeSt.com that the space at 4660 N. Sam Houston Pkwy. East was SLM-IQ’s final choice out of six other options because it was ready for immediate move-in and required no TIs. Kugel, who represented the tenant with NAI Houston principal John Ferruzzo declined to discuss the lease consideration, only to say the rate was competitive and the deal included some free rent on the front end. Quoted lease rates on flex, warehouse and distribution space in Houston’s far north submarket range from $4.50-$6.50 per sf, net.

Ultimately, it was the space’s location that triggered the decision to move to World Houston. “The proximity to Bush Airport, Highway 59 and Beltway 8 was the key,” Kugel explains. SLM-IQ, which buys scratched and dented electronics, will use the space to test the electronics, refurbish them, then distribute them throughout South America.

“They ship by truck only,” Kugel says. “But they’ll use 59 to get to Laredo (Texas), then through Mexico and to South America. That was significant in this decision.” Though SLM-IQ isn’t planning to ship product via air, direct flights from Toronto to Bush Intercontinental Airport also played a factor in the decision. The remainder of the building is vacant, and Kugel says SLM-IQ has the option of expanding into the space if needed.

World Houston 11 is part of the Jackson, MS-based EastGroup’s two-million-square-foot World Houston International Business Center. World Houston is comprised of 26 completed flex buildings, with three more, World Houston 28, 29 and 30, currently under construction.

Insite Commercial Real Estate of Houston has the marketing assignment for the development. Insite Commercial’s Rives Nolen represented EastGroup in the SLM-IQ lease negotiations.