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Dotcom Distribution is extending its lease at a four-building distribution complex in Edison.

Avison Young represented the tenant in its lease extension for more than 400,000 square feet at 100-400 Nixon Lane in the Middlesex County municipality.

The 850,000-square-foot property is owned by Prologis.

An Industrial Occupier Solution team from Avison Young‘s New Jersey office comprised of Principal Ed English, Senior Associate Paul Errigo and Principal Ron Ganter represented Dotcom Distribution in the deal. According to the firm, that also included a conversion from a traditional triple net lease to Prologis‘ trademark Clear Lease, marking the fourth time the team has represented a tenant of 100,000 square feet or more in such a switch. Prologis was represented in-house by Director Sarah Rutherford with support from KBC Advisors’ Marc Petrella.

Avison Young said the deal took more than nine months to complete.

“Asking rents in the area for quality distribution real estate have more than tripled in recent years and demand for large blocks of space is particularly strong,” English said. “Dotcom has been creating jobs and contributing to the local economy for more than 20 years, and it was incredibly rewarding to come to an agreement with Prologis that helps to keep their employees, customers, and operations in place.”

According to data, industrial rents were up 13% quarter over quarter and 56% year over year in North and Central Jersey in the second quarter of 2022.

The tenant – a fulfilment provider – will maintain its current footprint and infrastructure at the property.

“From an e-commerce standpoint, there are clear advantages to operating a warehouse close to major East Coast ports, highways, and dense populations of online consumers, but this real estate market is challenging,” said Dotcom Distribution Chief Commercial Officer Robert Coon. “We negotiated hard for nine months and did everything we could to keep costs as low as possible given the two adjoining realities: commercial space in this area is unprecedentedly expensive, and it’s worth it for us and for our partner e-commerce brands to be in this strategic location.

“Avison Young’s Occupier Solutions team supported us throughout the process, Prologis has been very amicable to work with, and we’re happy to have reached a win-win result and continue our tenancy,” he added.