Demand for industrial space in the Baltimore-Washington corridor is continuing to surge, with a food distributor leasing a full building.

Provender Partners, the owner of a 364K SF food distribution center in Severn, Maryland, announced Monday it signed a full-building lease with Nash Finch Co.

The seven-year lease has a total value of $25.8M. JLL's David Dannenfelser and Colliers' Chris Cummings brokered the deal.

Nash Finch Co. distributes food to independent supermarkets. The company merged with Spartan Stores in 2013 to form SpartanNash Co., but it still operates as Nash Finch Co. in some markets, a Provender spokesperson said.

The distribution center offers a mix of freezer, cooler and room temperature warehouse space. It is located at 8024 Telegraph Road, roughly 25 miles from D.C. and 15 miles from Baltimore.

The region's industrial market has been one of the strongest real estate sectors during the pandemic, as e-commerce companies and food distributors have expanded rapidly to meet customer demand. Their activity has created more industrial demand than developers can find the space to accommodate in the region.

"A 7-year lease with a company of this size provides further evidence of the need to provide ‘last mile’ distribution to densely populated areas of the United States," Provender Partners CEO Neil Johnson said in a release. "As our country experiences unprecedented food supply challenges, unique solutions are required to prevent further disruptions to both consumers as well as our farmers and food industry workers."