Sussex-based Quad/Graphics Inc. has leased the second of two warehouses in Pewaukee that were formerly occupied by American TV & Appliance and plans to move its commingling operations there from New Berlin.
“It gives us room to grow that operation,” said Quad spokeswoman Claire Ho.
When American TV went out of business last year it vacated a 188,210-square-foot warehouse and a 99,740-square-foot warehouse at W288 N2801 Duplainville Road in Pewaukee. The buildings are owned by Atlanta-based The Westmoreland Company.
Quad leased the smaller of the two former American TV warehouse buildings last year and recently signed a lease for the larger building, according to sources.
Mike Judson and Mark Gorski of Judson & Associates were the listing brokers for the former American TV warehouse buildings. Judson confirmed that a lease has been signed recently for the 188,210-square-foot building, but declined to say who the tenant is.
The former American TV warehouses are located near Quad’s print production facility at W224 N3322 Duplainville Road.
Ho confirmed that Quad is leasing the 188,210-square-foot former American TV warehouse in Pewaukee and said the company will move its commingling operations there from its current location in a 225,000-square-foot building at 5600 S. Moorland Road in New Berlin. The New Berlin building is also occupied by Tempt In-Store Productions, a division of Quad/Graphics, which will remain at that location.
“Tempt will continue to grow in New Berlin,” Ho said.
Quad established the commingling center at the New Berlin facility in 2013. The commingling process merges individual letter-size mail pieces from multiple clients into a single mail piece that qualifies for U.S. Postal Service presort discounts and dropship savings. The process, done for direct mail clients, qualifies for the most advantageous postage rates while also giving marketers the ability to track their campaigns at the per-piece level, according to Quad. The company says its “massive commingling volumes drive the greatest possible postal savings while speeding in-home delivery predictably and efficiently.”
Quad will be able to expand its commingling center in Pewaukee, where it will not have to share space with the Tempt operations. The commingling operations will utilize the entire 188,210-square-foot building, Ho said. Work to move commingling equipment from New Berlin to Pewaukee will begin in April and will be complete in June, she said.
The Quad lease of the former American TV warehouse buildings removes a significant amount of supply from the Waukesha County industrial real estate market, which had a vacancy rate of only 3.62 percent in the fourth quarter of 2014, according to Xceligent data. The county absorbed 235,818 square feet of industrial space in the fourth quarter and 350,484 square feet in all of 2014.