HD Supply is the first tenant to take space in the warehouse at 6825 W. Buckeye Rd., bringing occupancy to 46%. The quoted rate is $4.56 per sf, triple net.
The warehouse is one of two acquired in the spring by Des Moines-based Principal Global Investors from the Alter Group of Chicago. A 303,495-sf warehouse at 6923 W. Buckeye Rd. also is vacant.
Gregory White, senior vice president with CB Richard Ellis in Phoenix, says the lease capped off a yearlong, valley-wide search by HD Supply for expansion space. The tenant rep tells GlobeSt.com that the company's management team examined 25 properties. "This facility worked well because it offered lower operational costs and an ideal location," he says.
White says HD Supply's existing 90,000-sf building at 1590 E. Riverview Dr. is now available. CB Richard Ellis has the leasing assignment.
Pat Harlan, senior director in Phoenix for Cushman & Wakefield of Arizona Inc., says a transaction that's the size of HD Supply's is significant in a market with 265 million sf and 9.2% vacancy. "This is a quality credit tenant," says Harlan, who represented Principal Global with Cushman & Wakefield associate director Steven Sayre and client coordinator Katy Boyd. "It's a sizeable chunk of space in this market, which is really good news." He adds that the activity for both buildings has been fairly stable although he declined to discuss potential deals for the 162-acre Buckeye Logistics Center.
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