Home décor retailer Kirkland's has leased a 771,000 sq. ft. distribution center in Jackson, Tenn., that will be built by New York-based REIT Lexington Corporate Properties Trust.
"We’ve been pursuing a strategy of planned, incremental improvements in our distribution capabilities for several years now, and consolidating our distribution operations under one roof is an important step," says Robert Alderson, Kirkland's president and CEO.
The new center, which will be finished early next year, is located on 80 acres of land within Madison County’s Airport Industrial Park. The retailer’s initial term of 15 years will begin in May 2004.
The lease also gives Kirkland's the option to expand the facility by 400,000 sq. ft., and provides for two successive 5-year renewal options.
"We’re also pleased that the financial terms of our lease will allow us to secure this long-term facility at approximately the same annual lease cost as we pay today for three buildings," Alderson adds.