Developer Richard Tanenbaum is still stuck on Interstate 35 in north Oklahoma City.
Fresh off a $17 million industrial sale and 15 years after his first big splash, an industrial build-to-suit project for Ohio-based consumer tape maker Manco Inc., now ShurTech Brands, Tanenbaum has seen such success lately that he’s going purely speculative. ShurTech makes the popular Duck Tape.
He said he’ll have a 125,000-square-foot spec warehouse, his first, up by December at his Northgate Industrial Park at I-35 and Hefner Road across from Frontier City.
It’s because of the inventory of Class A space in his portfolio: zero. That and the lack of big Class A industrial spaces in town have him clearing and grading a site and preparing to tilt up concrete walls without a signed tenant.
“The timing is right for spec construction,” Tanenbaum said. “Vacancy is low, rental rates are increasing and there’s a continued demand for large, Class A industrial facilities.”
He saw the demand a year ago after signing another big project with ShurTech: a 280,000-square-foot distribution center a mile south of the first one, at I-35 and Britton Road. He said he had no worries about backfilling the 154,000 square feet ShurTech was going to leave behind at I-35 and Hefner.
If he had any doubts, they were gone by the first of the year.
“When news reached the market that ShurTech would be vacating the facility at Northgate, Crest Foods quickly seized the opportunity to lease the Class A distribution center,” said Brett Price, senior vice president of Newmark Grubb Levy Strange Beffort, which handles leasing and sales for Tanenbaum’s Gardner Tanenbaum Holdings.