CBRE announces that Tianhai Electric North America, a manufacturer of wiring harnesses and battery cable assemblies for the automotive industry, signed a 120,000-sq.-ft. lease at 19 Leigh Fisher in El Paso, Texas.
Chad McCleskey and Christian Perez Giese of CBRE's El Paso office arranged the transaction on behalf of the landlord, an affiliate of the Covington Group, Inc.
Tianhei Electric North America supplies automotive clients throughout Northern Mexico. The company has a manufacturing facility in Cd. Juárez, Mexico and is headquartered in Pontiac, Michigan. The lease represents a relocation and expansion for the firm, which has operated a smaller warehouse in El Paso for many years.
"This lease demonstrates our view that the El Paso market has seen and will continue to see robust activity and rent growth, driven in part by the resurgence and strong performance of the automotive industry," said Ken Sheer, principal, Covington Group.
Covington acquired 19 Leigh Fisher in early 2016 as part of a six-building portfolio and immediately initiated a major renovation of the building, including a white box inside the warehouse area, new exterior and interior lighting, exterior paint and landscaping, and overall deferred maintenance to the property.
"This transaction is a great example of the continued cross-border business between Texas and Mexico as well as the success of real estate investors in El Paso," said Mr. McCleskey.
"The lease of 19 Leigh Fisher is another demonstration of the resurgence of El Paso's industrial market and, specifically, Butterfield Trail. There have been several significant new transactions in this industrial park in the past 12 months and demand remains strong heading into the second half of 2017," said Mr. Perez Giese.
According to CBRE Research, El Paso's industrial market saw the second largest decrease in availability in the U.S. during the second quarter of 2017, behind Philadelphia and ahead of Cleveland. Additionally, net absorption in the first half of 2017 exceeded total net absorption in 2016—652,162 sq. ft. in H1 2017 compared to 584,511 sq. ft. in all of 2016.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
More Info: http://www.cbre.us/elpaso