Lingerfelt Announces Another Full-Building Lease and 100% Occupancy at Ashton Logistics Park

Rhea-AI Summary

Lingerfelt and Colliers have announced a full-building lease with Shepherd Electric Supply at Ashton Logistics Park in South Chesterfield, VA. The 85,750 square-foot lease in Building 2 brings the two-building, 523,407 square-foot Class-A industrial park to 100% occupancy. This milestone also marks 100% occupancy of Lingerfelt's 1.8 million-square-foot, seven-building industrial portfolio in the Ashton Creek node of Chesterfield County.

The speculative development project, delivered in Q1 2024, was initially 84% pre-leased during construction. Shepherd Electric Supply, founded in 1892 and now a subsidiary of Graybar, is the oldest wholesale electrical distributor in the Mid-Atlantic region. The lease highlights Lingerfelt's focus on delivering premier, user-ready industrial space in logistically exceptional locations.

Positive

• Full-building lease signed with Shepherd Electric Supply for 85,750 square feet
• Ashton Logistics Park reaches 100% occupancy
• Lingerfelt's 1.8 million-square-foot industrial portfolio in Ashton Creek node achieves 100% occupancy
• Speculative development project delivered at 84% pre-leased, now fully occupied

Negative

• None.

Insights

Real Estate Analyst

The full-building lease to Shepherd Electric Supply marks a significant milestone for Lingerfelt's Ashton Logistics Park. This 85,750 square-foot deal brings the two-building, 523,407 square-foot industrial park to 100% occupancy, demonstrating strong demand for Class-A industrial space in the region.

What's particularly noteworthy is the speed at which the park reached full occupancy. Delivered in Q1 2024 at 84% pre-leased, it took less than six months to fill the remaining space. This rapid absorption rate suggests a robust industrial real estate market in the Chesterfield County area.

Moreover, this lease contributes to Lingerfelt's broader success in the Ashton Creek node, bringing their entire 1.8 million-square-foot portfolio in the area to full occupancy. This achievement underscores the strategic location's appeal and Lingerfelt's ability to meet market demand effectively.

For investors, this news indicates strong performance in Lingerfelt's industrial portfolio, potentially leading to stable cash flows and increased property values in the near term.

Supply Chain Expert

Shepherd Electric Supply's expansion into this new facility signals potential growth in the electrical distribution sector. As a subsidiary of Graybar, a Fortune 500 company with over $11 billion in revenue, this move likely indicates a strategic expansion to enhance their distribution capabilities in the Mid-Atlantic region.

The choice of location is crucial. Ashton Logistics Park's position in Chesterfield County's Ruffin Mill/Ashton Creek industrial node suggests it offers superior connectivity and infrastructure. For Shepherd Electric, this translates to improved supply chain efficiency, potentially reducing transportation costs and delivery times.

This expansion could lead to increased market share for Shepherd Electric in the region, possibly disrupting competitors. It may also indicate growing demand in sectors they serve, such as commercial construction and industrial facilities, which could be a positive economic indicator for these industries.

Investors should monitor how this expansion impacts Shepherd Electric's and Graybar's market position and financial performance in the coming quarters.

Industrial Market Analyst

The rapid leasing of Ashton Logistics Park reflects a broader trend in the industrial real estate market. The 84% pre-leasing of Building 1 during construction and the swift occupation of Building 2 indicate robust demand for high-quality industrial space, particularly in strategic locations.

This trend aligns with the ongoing e-commerce boom and the need for efficient distribution networks. The success of Lingerfelt's speculative development suggests they've accurately gauged market demand, a positive sign for their future projects.

The long-term nature of these leases, as mentioned in the article, provides stability to Lingerfelt's portfolio. However, it's worth noting that long-term commitments might limit flexibility in adjusting to future market changes.

For investors, this news underscores the continued strength of the industrial real estate sector. It also highlights the importance of location and quality in attracting tenants, even in a competitive market. The success of this project may encourage more speculative industrial developments in similar strategic locations.

RICHMOND, Va., Sept. 16, 2024 /PRNewswire/ -- Lingerfelt and Colliers are pleased to announce the execution of an 85,750 square-foot, full-building lease with Shepherd Electric Supply in Building 2 at Ashton Logistics Park, located at 1630 Ashton Park Drive, South Chesterfield, VA 23834. Colliers' Wood Thornton, Rob Dirom, and Frank Hargrove, III handled lease negotiations on behalf of Lingerfelt.

Founded in 1892, Shepherd Electric Supply is the oldest wholesale electrical distributor in the Mid-Atlantic region. American-owned, the company prides itself on exceptional customer service and the most extensive inventory in the area. Shepherd has specialized divisions to handle a diverse group of customers including commercial construction, lighting and switchgear projects, commercial facilities, facility management, industrials, OEMs, and government organizations. In July of 2023, Shepherd Electric Supply became a wholly owned subsidiary of Graybar, an American wholesale electrical, communications, and data networking products distribution business. Based in Clayton, Missouri, the employee-owned corporation is included on the Fortune 500 list of the largest US corporations, with over $11 billion in revenue (FY 2023).

Ashton Logistics Park is a two-building, 523,407 square-foot, Class-A industrial warehouse-distribution park situated in Chesterfield County's Ruffin Mill/Ashton Creek industrial node. The speculative development project, designed and constructed by ARCO Design Build, was delivered in Q1 of 2024 at 84% occupancy, with Building 1 (437,657 SF) entirely pre-leased during its construction. The Shepherd Electric lease brings the two-building Ashton Logistics Park to 100% occupancy on a long-term basis and marks the notable milestone of 100% occupancy of Lingerfelt's 1.8 million-square-foot, seven-building industrial portfolio in the Ashton Creek node of Chesterfield County alone.

John Mason, Senior Vice President of Development at Lingerfelt said, "We are excited to welcome Shepherd Electric to Lingerfelt's last remaining available space in the Ashton Creek node. The Shepherd transaction highlights why Lingerfelt is focused on delivering premier, user-ready industrial space in logistically exceptional locations. Ashton Creek's strategic location provides the connectivity and infrastructure that companies like Shepherd Electric require to enable their rapid growth and success. We are eager to support their operations as they expand their presence in the Mid-Atlantic region."

About Lingerfelt

Lingerfelt is a results-driven, vertically integrated real estate investment management firm serving the Mid-Atlantic and Southeast United States. Since the 1950's, Lingerfelt has been a dependable name in real estate and continues to build upon a stellar reputation by sourcing and investing in unique real estate opportunities that provide outsized returns for investors and partners. Lingerfelt, along with its partners, has successfully constructed, acquired, and managed a portfolio of over 25 million square feet of commercial real estate valued at over $3 billion and growing each day. 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 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

About Shepherd Electric Supply
Founded in 1892, Shepherd Electric Supply is the oldest wholesale electrical distributor in the Mid-Atlantic region. American-owned, the company prides itself on exceptional customer service and the most extensive inventory in the area. Shepherd has specialized divisions to handle a diverse group of customers including commercial construction, lighting and switchgear projects, commercial facilities, facility management, industrials, OEMs, and government organizations. In July of 2023, Shepherd Electric Supply became a wholly owned subsidiary of Graybar, an American wholesale electrical, communications and data networking products distribution business. Based in Clayton, Missouri, the employee-owned corporation is included on the Fortune 500 list of the largest US corporations, with over $11 billion in revenue (FY 2023).

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

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SOURCE Lingerfelt

FAQ

What is the occupancy rate of Ashton Logistics Park after the Shepherd Electric Supply lease?

After the Shepherd Electric Supply lease, Ashton Logistics Park has reached 100% occupancy.

How large is the lease signed by Shepherd Electric Supply at Ashton Logistics Park?

Shepherd Electric Supply signed an 85,750 square-foot, full-building lease in Building 2 at Ashton Logistics Park.

What is the total size of Lingerfelt's industrial portfolio in the Ashton Creek node of Chesterfield County?

Lingerfelt's industrial portfolio in the Ashton Creek node of Chesterfield County totals 1.8 million square feet across seven buildings.

When was the Ashton Logistics Park development project delivered?

The Ashton Logistics Park development project was delivered in Q1 of 2024.