Collotype Labels will lease the building space on 7.16 acres at 21 Executive Way, said Glen Dowling, of Cushman & Wakefield real estate firm, which represented both the tenant, Collotype, and the landlord, Whal Properties, in the deal announced Friday.
"Collotype, which provides high quality labels for the wine industry, needed room to expand," Dowling said. "The company was able to expand in place and was willing to commit to a longer term.”
With the signing of the lease, tenant Collotype Labels grows its operations from 51,000 square feet to 71,237 square feet. Dowling said the arrangement also includes extending Collotype's lease to 120 months.
Collotype president David Buse said the lease is a reflection of an uptick in the wine industry.
"The wine market industry is growing, and all signs are that it will continue to grow,” Buse said. “We’re growing with the market and needed additional equipment and people, and the additional space to accommodate that growh."
Situated at 7.16 acres near the intersection of state highways 12 and 29
in Napa, the 150,000-square-foot 21 Executive Way was
constructed in 2006.
Co-tenant with Collotype Labels is Sutter Home Winery, which relocated to the site earlier this year in a transaction similarly arranged by Glen Dowling of Cushman & Wakefield.
“This market is extremely active right now, and the vacancy is very tight—under4 percent,” said Dowling. “I have been working in this market for 29 years and have never seen it so tight. The largest availability right now is approximately 25,000 square feet.”
Market conditions in the region are generating several new industrial projects, according to Dowling.
“There is one building of approximately 103,000 square feet under construction, slated for delivery in April of 2014,” he said. “There are at least five projects teed up behind it, and several of them should be under construction next year.”