FORT WORTH-ATC Logistics & Electronics will remain in its space at the 375,000-square-foot Gateway 5 building and the 181,039-square-foot Gateway 31 building, thanks to a three-year agreement that will keep the third-party logistics provider in its current digs at Alliance Global Logistics Hub. The renewal means ATCLE will remain one of the larger tenants at Alliance Global, occupying a grand total of 969,547 square feet at the Hillwood development.
“The lease on the two buildings were up, and we just decided to negotiate them for another three-year term,” explains Antony Francis, ATGLE president. He explains that CB Richard Ellis first vice president Ryan Keiser, who represented ATGLE, benchmarked other alternatives in the area in terms of cost. The preference, overall, was to remain, as the company had a significant equipment investment in the two buildings.
“It would have been difficult to move that application elsewhere, so the best-case scenario was to negotiate good rates, remain where we are, and maintain existing operations,” Francis tells GlobeSt.com.
Steve Aldrich, Hillwood Properties vice president says the catalyst in getting negotiations going was Gateway 31, which ATGLE took in 2007. “The company was looking at it as a temporary solution to allow them to chase some projects, and those projects became permanent in nature,” Aldrich says.
ATGLE first became a Hillwood tenant in the mid-1990s, taking down 40,000 square feet. Over the years, as the company grew, it took more space and eventually made the move to the 17,000-acre Alliance Global Logistics Hub.
“One of the great things is that we’ve been able to work with them and flex up with them as needed,” Aldrich remarks. “They grew from 40,000 square feet to almost one million square feet in a little more than 10 years. If they continue that trend in the next 10 years, that’ll be close to half our entire square footage.”
Francis says he’d love to see that happen, and if it does, Hillwood will remain ATGLE’s landlord of choice. “Hillwood has some great properties there,” he adds. “As soon as we’re forced into the wonderful choice of having to go into another building, we’ll take more space over there.”