After more than two years of weighing its options, Schneider Electric was able to expand the lease it held in Northwest El Paso with landlord Stag Industrial for a total of more than 760,000 square feet. The deal comprises lease extensions on three existing leased sites of 577,000 square feet combined plus an additional 186,000-square-foot facility to expand into.
The lease renewal and expansion by Schneider Electric at 6500 N. Desert Blvd. has earned a 2025 CoStar Impact Award for lease of the year in El Paso, Texas, as judged by real estate professionals familiar with the market.
The deal overcame several challenges, including the initial unavailability of the adjacent space, as well as difficult conditions for new development. Schneider Electric needed to increase its warehouse and manufacturing capacity while also eliminating an expensive third-party logistics location. It also needed long-term lease extensions for its planned capital investments.
It also had to negotiate capital improvement concessions for significant sustainability improvements, including the conversion to 100% electric, zero-carbon heating, ventilation and air conditioning for its office and warehouse space. There’s also the need to obtain participation from the local government for site access safety improvements as well as economic incentives from both the city and state. Limited parking was also an issue.
The expanded lease solidified Schneider Electric’s presence in El Paso, keeping the company as a long-term occupant in the market, retaining thousands of jobs.
About the deal: Work on the new lease began in mid-2022 when Schneider Electric needed to expand its manufacturing and warehousing capacity at its facility in Northwest El Paso. Its goal was to supplement its already large presence in the Northwest Corporate Center. It approached its landlord, Stag Industrial, about expanding into an adjacent 186,000-square-foot property, but it was already occupied by an existing tenant.
Schneider Electric reviewed several of its options over the following years, including the development of a new facility, but that previously sought-after adjacent property became available. After 27 months from its initial efforts, Schneider Electric completed its renewal and expansion into a 765,000-square-foot lease.
What the judges said: "Schneider Electric is a powerhouse and has contributed not only jobs to our region, but sustainable solutions to the environment. The company is clearly driven, operates efficiently, and we are grateful to have them invest in El Paso," said Laura Salome, managing director at SVN Fortune Real Estate.
"Schneider Electric is a prominent tenant in El Paso, actively expanding its operations within the city. I was aware of their 186,000-square-foot expansion to its facilities. With a workforce of approximately 2,000 employees, they play a vital role in the local economy by providing numerous employment opportunities. Beyond direct jobs, the company's expansion also stimulates the creation of indirect jobs related to construction and development activities associated with their new facilities. This growth not only underscores Schneider Electric's commitment to El Paso but also enhances the city's economic landscape by contributing to job creation and infrastructure development," said Sergio Tinajero, founding partner at REPcre.
They made it happen: Adin Brown, president/partner, broker associate at Sonny Brown Associates; Randall Hogan, vice president of transaction management at Colliers; and Scott Moore, vice president of enterprise clients at Colliers.