LKQ Corporation
  • Location : Austin, TX
  • Client : LKQ Corporation
  • Size : 126,782
  • Type of Project : Industrial
  • Service Type : Tenant Representation

Situation
– LKQ Corporation (Nasdaq: LKQ), a Fortune 500 company, is North America’s largest provider of alternative collision auto parts, and a leading provider of recycled and remanufactured mechanical parts including engines and transmissions, all in connection with the repair of automobiles and other vehicles.
– Their industrial warehouse requirement was projected to increase from 50,000 SF to 100,000-150,000 SF, immediately.
– The number of existing contiguous blocks of Class-A product exceeding 100,000 square feet were extremely limited at the time the transaction was completed. 

Operational Solution
– Austin’s industrial market, the city’s smallest commercial sector in terms of transactional and construction activity, remains healthy for a city that is not as well-positioned for large scale distribution initiatives as are cities like San Antonio or Houston.
– Negotiated the lease for LKQ at Heritage Crossing, a new development owned by Clarion Partners.
– 126,782 SF with expansion options will provide LKQ the ability to grow if needed.

Resources Mobilized
– Avison Young brokerage services teams in Austin and Los Angeles collaborated in negotiating the lease.
– Utilized AY’s internal financial team to comparatively evaluate multiple proposals.
– Negotiated the release of a $750,000 lease obligation in Portland, OR as part of the terms.
 
Impact
– Operational savings in excess of $3,000,000 through the lease negotiation process.
– The lease allows LKQ valuable control over their real estate in Austin.
– The site will serve as a major distribution center for Austin and Central Texas.
– Secured prime location within Project and Building, maximizing exposure for LKQ’s retail component.