We’re also negotiating power in places like St. Louis and other markets. But that’s going to be, one of the prohibiting factors of reshoring is going to be infrastructure and then obviously labor. If you get those things figured out, this phenomenon is not going to stop. So I think we benefit by being in these markets that have the infrastructure.
Bryan Maher: And is it too early, though — I mean, look, we’re analysts, right, and we like to quantify everything. Is there — is it too early to kind of really put pen to paper and quantify the impact on demand for warehousing space in these markets? And this is just a bigger picture shot across the bow, hey, it’s coming, we’re going to have demand, but we don’t exactly know what that demand level is going to be.
Jeff Witherell: Yes, I think if you look at just investment in manufacturing, and I’ll get these numbers wrong, but between 2019, 2020 — 2020 and 2023, I mean, you had an increase of about $180 billion of investment, right, in new manufacturing. And they think that that level of investment is going to carry for the next ten years. So these are all data points. And so again, where are you going to build, where are you going to put this new manufacturing that’s coming in? I think we’ll get to this, but this building in Grove City, Ohio, that we’re selling, I mean, this has been really the — what we’ve been talking about, I think one-on-one for two years now is that building is occupied by American Nitrile, which is the first manufacturer of nitrile gloves, it’s basically gloves for medical use and so on and so forth.
They’re the first manufacturing in the United States in 50 years and they’re in that building. So they came in and put in $15 million to $20 million of improvements in the building. In order to do that, we needed to give them a purchase option, right, and so that’s why that was done. And now they’re going to take that building and they’re going to expand. So this is happening on the ground, and it’s pretty exciting to see.
Bryan Maher: Okay, thank you. That’s helpful.
Jeff Witherell: Okay. Thank you.
Operator: Our next question will come from Anthony Hau with Suntrust. You may now go ahead.
Anthony Hau: Good morning, guys. Thanks for taking my question. Just curious, were you guys able to extend the lease at [inaudible] in Memphis?
Jim Connolly: Yes, that’s the most lease that we extended.
Jeff Witherell: Yeah. So that’s the lease that Jim mentioned, extended for nine months. Maersk is exploring the option to extend beyond that. In the event that they don’t, we have another prospect already lined up, interested to start in January 2025.
Anthony Hau: Gotcha. And I know it might be too early, but have you guys had any conversation with Geodis and Royal Canin about renewal?
Jim Connolly: Yeah, Royal Canin contacted us about extending the lease another year. And then Geodis, we’ve talked to them. They were one of the first tenants last year. The last time that they renewed that, they held on to the lease to the last minute. So I expect they’re going to take us to the last date, but they — the building’s full and we’re positive they’re going to renew.
Anthony Hau: Gotcha and then just one last question. I know you guys are currently in negotiation with communication test design to extend the lease. Would this be like a one year extension or a multi-year renewal?
Jim Connolly: They asked for several different options. They look for five year option, seven year option.
Anthony Hau: Okay. Gotcha. Thanks.
Operator: [Operator Instructions] Our next question will come from Brendan Lynch with Barclays. You may now go ahead.
Brendan Lynch: Great. Thanks for taking my questions. You have a little less than a quarter of leases expiring in 2025. How soon can you start addressing those, and where might that come down to as a percentage of leases to address by year end?
Jim Connolly: Yeah, I would estimate that that number is going to be around 50%. We’ve got several large tenants that have already approached us about renewing, so I think it’s going to come down quite a bit.
Brendan Lynch: Okay, that’s helpful. And then on development, maybe you could give a little bit of color on the prospect of leasing up the one facility in Cincinnati and also your interest in commencing the next phase of development at some point in the near future.
Jim Connolly: I’ll take the first part. The current space, the 53,000 square feet that’s available in Fisher Park, Fisher Industrial park. Both tenants that are in the building now are asking about it, whether to take some of that space, plus another tenant that’s over in the main building, Fisher Industrial Park is looking to expand in that as well. Plus we have a few other prospects that are there, so we think it’s going to lease up very soon.
Jeff Witherell: As far as new development is concerned, we do outline in the supplement the available land that we have another million and a half square feet, plus or minus to build. We have identified several parcels there where the buildings are designed, and we could pull permits momentarily, but we’re not going to do it on a spec basis like we did in the past. So we’re going to wait until the building to suit shows up before we break ground. We think that’s prudent.
Brendan Lynch: Great. Thanks for the color.
Jeff Witherell: Thank you.
Operator: It appears there are no further questions. This concludes our question and answer session as well as the conference. Thank you for attending today’s presentation. You may now disconnect.
