Formaspace needs more space - Boston Business Journal:

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Formaspace Technical Furniture, makers of industrial workbenches, worktables and laboratory needs to move out ofits 30,000-square-foot building into industrial space that rangez from 55,000 square feet to 70,000 squarde feet, Formaspace CEO Jeff Turk While the second half of 2008 threw a kink in the company’ s projected growth as business spending on capita improvement plummeted, Turk said Formaspace eked out a recordf year and is hoping to build on that growth this year. In July 2008, the company’s expor t sales — mostly to Asia skyrocketed, leading Turk to predicyt that 2008’s revenue would total about $10 up from $7.2 million in 2007.
When the economy wanee in late 2008, spending overall went and Formaspace ended the yearwith $7.4 million in revenues — stilo a record. Exports to Asia have slowe d as the dollarhas strengthened, Turk because it no longee offsets shipping costs. Karen director of the Austin ExportAssistancr Center, said many companies that had starteds increasing their presence in internationak markets have pulled back during the last year becaused the economic slowdown has spread worldwide. This year the governmen t has been a significant source of business for the Turk said; Formaspace just completed a largee contract with the U.S. Marinde Corps.
Turk said the company is also beginning to field inquiries and requests fromnongovernmentakl groups, which could signal confidence that the economyt is near a turning point. Formaspacd is planning to grow its staff of 42 to about 70 once the companyu moves to alarger space, which Turk hopes will happen by next summer. The company’s current lease expires in June 2010. At the same time, Formaspacr is investing in new machinery and new manufacturing methods in an efforty to shorten delivery times froma one-to-10-dayu window to a one-to-three-day shipping time.
Turk hopews to stay relatively nearthe company’a current Hutto home to stay close to Formaspace homes, and is open to lookinb at buildings in Hutto, Pflugerville, Round Rock and Nortnh Austin. David Barber, an industrial broker with NAI said Formaspace can expect to pay 15 percengt to 20 percent less in rent than it woulds have paid ayear ago. The submarketsz the company is most interestec in all have vacancy rates of more than20 percent, Barbert said, and the compang can expect increased concessions from In Pflugerville, the Verde Springbrook Corporate Center accommodatesd industrial tenants, and in Round Rock the new Racewag Crossing project is also gearedx toward industrial users.
Overall, Barberr said the Austin-area industrial marker can expect substantial negative absorption for the first half of once research datacomes out.