The Herald-Leader is seeking to lease its Fortune Drive building that houses its newspaper inserting and commercial printing operations. The plant also is a newspaper delivery distribution center.
The move comes as the Lexington media company has consolidated staff at its Midland Avenue headquarters after a series of job cuts in recent years, owing in part to the rough economy and to the transition of media advertising from print to Web.
The company has freed space on the third floor of its main building, on Midland Avenue, and has attempted to lease it in the past year. If the Fortune Drive building were to be leased, Publisher Rufus Friday said, those employees and equipment would return to Midland Avenue.
Friday said the lease would reduce costs for the Herald-Leader, which leases the Fortune Drive property from the pension fund of the Herald-Leader's parent company, The McClatchy Co. In January 2011, McClatchy announced that it was contributing some of its real estate, including the Fortune Drive building, to the pension plan to help meet funding obligations.
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"Right now, we're paying a lease ourselves on that space," Friday said. "Since we have added space here, if we could find another lessee for that facility, we would save paying a monthly fee."
He didn't state the amount of the potential savings.
Commercial real estate broker Tim Haymaker, whom the Herald-Leader has contracted to market the 74,000-square-foot property, called it a "grand" building. It's primarily warehouse area but includes 10,000 square feet of office space on two stories.
Built a little more than a decade ago, it's "one of the few industrial properties with heating and air conditioning," said Haymaker, a broker at Haymaker/Bean Commercial Real Estate. "It also has significantly more parking than normal for an industrial building."