A locally based development group called Hohokam Park has started construction of a 46,725-sf industrial/flex building called Hohokam Tech. The project, near University Drive and Hohokam Expressway in this Phoenix suburb, is scheduled to be completed by the end of this year.
The development group is led by local investor Steven Maderazzo. The space will be offered for sale or lease in blocks of at least 20,000 sf.
Maderazzo expects most of the space to be used for call centers or other back-office purposes. Too much back office space was built in 1998, pushing vacancy rates for the product into the high teens. But rates have since dropped back down to the 10%-range, as companies that include financial-services giants Wells Fargo and American Express have filled large blocks.
Bill Bayless of the local office of CB Richard Ellis is marketing theHohokam Tech project, which is about half the size ofthe typical back-office development in Tempe.
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