Lingerfelt Finalizes 106,376 SF Lease with PECO Pallet at Port 801

Rhea-AI Summary

Lingerfelt and Colliers have announced a 106,376 square-foot lease with PECO Pallet at Port 801 in Colonial Heights, VA, bringing the building to 100% occupancy. This new facility will serve as PECO's primary location for the greater Richmond area, extending to Fairfax, Norfolk, and West Virginia. The state-of-the-art warehouse, completed in Q4 2022, aligns with PECO's sustainability goals and allows for the deployment of automated sorting equipment to enhance safety and operational efficiency.

PECO Pallet, one of North America's largest rental pallet service providers, operates a network of 90 pallet depots managing over 20 million pallets. This expansion reflects the company's growth and commitment to providing superior pallet pooling services while emphasizing sustainability in the supply chain industry.

Positive

• PECO Pallet signed a large 106,376 square-foot lease, indicating business expansion
• The new facility allows PECO to invest in automated sorting equipment, potentially improving efficiency
• Port 801 building reaches 100% occupancy with this lease, suggesting strong demand for industrial space
• The new location enables PECO to better serve a wider geographic area, potentially increasing market reach

Negative

• None.

Real Estate Analyst

The lease agreement between Lingerfelt and PECO Pallet at Port 801 is a positive development for the industrial real estate market in Richmond. The 106,376 sq. ft. facility reaching 100% occupancy demonstrates strong demand for high-quality industrial spaces in the region. This transaction highlights the strategic importance of Chesterfield County for logistics and distribution companies.

The modern amenities and energy-efficient design of Port 801 align with the growing trend of sustainability in industrial real estate. This could potentially increase the property's value and attract similar environmentally conscious tenants in the future. The full occupancy of this speculative development also validates Lingerfelt's investment strategy and market timing.

Supply Chain Expert

PECO Pallet's expansion into this new facility signifies a strategic move to enhance its operational capabilities in the Mid-Atlantic region. The larger, more modern space allows for the deployment of automated sorting equipment, which should improve efficiency and safety in their pallet pooling operations. This upgrade aligns with industry trends towards automation and could give PECO a competitive edge in serving major industries like beverage, grocery and consumer products.

The facility's location, serving areas from Fairfax to Norfolk and into West Virginia, positions PECO to optimize its distribution network. This geographical advantage could lead to reduced transportation costs and improved response times for clients, potentially strengthening PECO's market position in the region.

• New 106,376 sq. ft. facility provides more space, upgraded facility for PECO's operations.
• State-of-the art facility becomes PECO's primary location serving the greater Richmond metro area, also clients in Fairfax and Norfolk.
• Gen 1 facility meets standards for energy efficiency and sustainability in line with PECO's requirements.
• Lease executed at Port 801 brings building to 100% occupancy.

RICHMOND, Va. and ITASCA, Ill., Sept. 5, 2024 /PRNewswire/ -- Lingerfelt and Colliers are pleased to announce a 106,376 square-foot lease with PECO Pallet at Port 801, located at 801 Port Walthall Drive, Colonial Heights, VA. The transaction brings Port 801 to full occupancy. PECO Pallet, Inc. is one of North America's largest providers of rental pallet services to the beverage, grocery, and consumer products industries. The transaction establishes PECO's primary operating facility serving the greater Richmond business community as well as clients North to Fairfax, Southeast to Norfolk, and West into West Virginia.

PECO is the second of two tenants in operation at Port 801, which is a 239,448 square-foot ground-up speculative industrial warehouse project designed and constructed for Lingerfelt by ARCO Design Build in Q4 of 2022.

"This location provides PECO with the opportunity to establish a showcase facility serving our customers in this region," said Daric Schafer, PECO's Senior Director - Depot Operations for the U.S. and Canada. "The modern amenities designed into this facility support our goals to position PECO as a preferred employer providing superior, responsive pallet pooling services."

Schafer added that the new facility enables PECO to invest in and deploy additional automated sorting equipment to improve safety and operational efficiency, further supporting the organization's emphasis on sustainability and being a good steward of the environment. PECO previously operated from a site in South Richmond.

Colliers' Rob Dirom, Wood Thornton, and Frank Hargrove, III handled the transaction on behalf of Lingerfelt. Graham Stoneburner of Cushman & Wakefield | Thalhimer represented PECO.

John Mason, Senior Vice President of Development at Lingerfelt said, "We are excited to welcome PECO Pallet to Port 801, marking another successful milestone in our commitment to delivering high-quality industrial spaces in the Mid-Atlantic region. This lease highlights the strategic importance of Chesterfield County for logistics and distribution companies. We look forward to supporting PECO in their growth and operational efficiency as they continue to lead in sustainable pallet pooling solutions."

"Working with the Lingerfelt and PECO teams to execute this final transaction at Port 801 has been an honor," said Wood Thornton, Senior Vice President & Principal in Colliers' Richmond office. "We were lucky to work with Lingerfelt on this project from land acquisition through full lease-up of the project, and are excited to have been able to help PECO continue their steady growth in Central Virginia through this transaction."

PECO Pallet operates North America's second largest pallet rental network with some 90 pallet depots managing an inventory of over 20 million of its signature red, high-quality 9-block pallets. A leading provider of high-quality, reusable wood pallets across North America, PECO is committed to delivering cost-effective and sustainable pallet pooling solutions. Their robust, durable pallets support efficient supply chains for manufacturers and distributors, reducing waste and optimizing logistics.

Pallets are the primary platform on which businesses stack, secure and ship products of all types in trucks, intermodal rail containers and other conveyance vehicles. PECO's network serves a variety of businesses including big-box retailers, club stores, consumer products companies, grocers, agriculture, and local and regional distributors.

About Lingerfelt

Lingerfelt is a vertically integrated real estate investment management and asset management company that is investing and developing throughout the Mid-Atlantic and Southeast. Together with its predecessors, Lingerfelt has maintained a reputation of quality and excellence in the commercial real estate industry dating back to 1957. Lingerfelt and its partners have built, acquired, and managed over 25 million square feet of commercial real estate valued at approximately $3 billion across the Mid-Atlantic and Southeast. To learn more, visit www.lingerfelt.co.

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 29 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of more than $4.4 billion and $96 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

About PECO Pallet, Inc.

Itasca, IL-based PECO Pallet is one of North America's leaders in pallet rental services and provides tens of millions of its red block pallets to major grocery and consumer goods manufacturers in the U.S., Canada, and Mexico. PECO Pallet's tremendous growth over the last 25+ years reflects the company's commitment to quality and service. Customers using PECO's superior pallets experience less product damage, greater efficiency, improved safety, and significant cost savings. For more information about PECO Pallet, please visit www.pecopallet.com.

For media inquiries, please contact: Rob Valentine, Principal, Lingerfelt | RValentine@Lingerfelt.co

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SOURCE Lingerfelt

FAQ

What is the size of PECO Pallet's new lease at Port 801?

PECO Pallet has leased 106,376 square feet at Port 801 in Colonial Heights, VA.

How does the new facility impact PECO Pallet's operations in the Richmond area?

The new facility becomes PECO's primary location serving the greater Richmond metro area, as well as clients in Fairfax, Norfolk, and West Virginia, allowing for expanded operations and improved efficiency.

What sustainability features does the new PECO Pallet facility at Port 801 offer?

The facility meets standards for energy efficiency and sustainability, aligning with PECO's requirements and allowing for investment in automated sorting equipment to improve operational efficiency and environmental stewardship.

How many pallet depots does PECO Pallet operate across North America?

PECO Pallet operates approximately 90 pallet depots across North America, managing an inventory of over 20 million pallets.