Case Study – M&D Marysville Industrial Park
12810,12906 & 12730 State Avenue, Marysville, WA
Overview
- Industry: Industrial/Manufacturing Campus
- Size: ± 290,749 SF Total Across 3 Buildings
- Landlord: Private Ownership
- Tenant: Confidential Aerospace Manufacturer
- Lease Type: NNN | Renewal & Restructure
The Outcome
A full-campus renewal was executed with the existing aerospace manufacturer. The new lease structure provided: enhanced rent terms, clearer expense responsibility, embedded flexibility for the landlord, and preservation of occupancy. The outcome eliminated vacancy risk, deferred maintenance exposure, and allowed the landlord to greatly increase cash flow while maintaining future optionality.
The Challenge
Ownership faced a full rollover across the entire 3-building, 290,749 SF industrial park. Each of the buildings had legacy lease terms that didn’t reflect current market standards. While the property had attracted serious interest from manufacturing users with interest in the heavy power and infrastructure, the complexity and cost of re-tenanting for multiple tenants—combined with a cautious leasing environment—introduced material risk. The existing aerospace manufacturer presented a retention opportunity, but required a sensitive & carefully planned negotiation due to operational concerns.
Our Approach
Lee & Associates ran a dual-track campaign, actively sourcing interest from new users while simultaneously negotiating with the existing tenant. Our team positioned the opportunity as a rare, power-heavy advanced manufacturing campus with cleanroom space, CNC infrastructure, yard area, and Class A amenities. We created a parallel set of prospective tenant LOIs to maintain negotiating leverage, and strategically restructured all lease documents with the existing tenant to benefit the landlord’s long-term position.
The Client
Private Investor holding a multi-state real estate portfolio including warehouses and light manufacturing properties who was seeking the top market experts to guide the process and ensure the successful execution of either potential outcome.
Lee & Associates
Lee & Associates is the largest broker-owned commercial real estate firm in North America with 1,750+ professionals in 80+ offices across 28 states and 3 provinces. Lee & Associates has been providing seamless, consistent execution and value-driven market-to-market services for our clients since 1979.
For more information regarding this case study, please contact:
Chris Peterson, SIOR, CCIM
Principal
D (425) 417-7983
cpeterson@lee-associates.com
Richard Peterson
Principal
D (425) 260-4439
rpeterson@lee-associates.com
Ryan Aleinikoff
Associate Vice President
D (206) 445-4912
raleinikoff@lee-associates.com