Warehouse Sells for $3.175 Million in Buffalo, New York

The sale of a fully leased warehouse/distribution center serves as a snapshot of the continued rising value of certain commercial real estate properties in the Buffalo Niagara region.

Investors ES 1930 Military Rd LLC paid $3.175 million for a 34,499-square-foot building at 1930 Military Rd., Town of Tonawanda, according to May 9 filings in the Erie County Clerk's office.

The building, constructed in 1965, had been 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 docks.

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

That means the building’s value has increased slightly more than 22% in the past seven years. The sale is the latest example of the rising 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 of more than 69 million square feet of reported warehouse/distribution space.