Warehouse sells for $3.175 million in Buffalo, New York

The sale of a fully leased warehouse/distribution center provides insight into the continued increasing value of some commercial real estate properties in the Buffalo Niagara area.

Investors ES 1930 Military Rd LLC paid $3.175 million for a 34,499-square-foot building at 1930 Military Rd. in the town of Tonawanda, according to documents filed May 9 with the County Clerk’s Office. Erie.

The building, constructed in 1965, was owned by investors KW But LLC.
FedEx Freight has leased the building for more than 20 years and recently signed a five-year lease extension. The cross-deck terminal has 68 berths.

KW Buf LLC paid $2.6 million for the building in September 2017, according to data from the county clerk’s office.

This means the building’s value has increased by just over 22% over the past seven years. The sale is the latest example of the growing value of warehouse/distribution space in the Buffalo Niagara region.

According to data compiled by CBRE Upstate, the region has just a 2% vacancy rate on more than 69 million square feet of reported warehouse/distribution space.