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PHOENIX-Eyeing the promise from increasing demand for industrial space in the Southwest, the Alter Group has mapped out a $64-million plan to develop 1.8 million sf of industrial and distribution space on 82 acres.
Buckeye Logistics Center will launch in early 2006 with the groundbreaking of a 640,000-sf spec building. "It wouldn't surprise me if the entire thing was built out within three to four years," Patrick Gallagher, senior vice president of Chicago-based Alter Group, tells GlobeSt.com.
The development site is located at Buckeye Road and 67th Avenue inside the Phoenix line. Buckeye Logistics Center will contain a mix of spec buildings--"our lead product," Gallagher says, citing the plan definitely includes build-to-suits as well.
Though official marketing on the project has not yet begun, Gallagher says many large companies have shown a great deal of interest in securing space in the new park. He envisions the tenant mix will be mainly consumer-oriented companies that need retail distribution centers as well as California-based companies. "They'll likely be attracted to the idea that distribution is less expensive in Arizona," Gallagher says.
The growing hunger for industrial space on the part of both types of tenants, Gallagher continues, is what spurred the Alter Group to put together the development. "As part of our overall national strategy, we're looking at creating big-box industrial properties," he explains. "We already had a regional office in Phoenix. That, combined with the demand for industrial real estate in the area, dictated our move."
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