PHOENIX—The Phoenix office of JLL has completed the $9 million sale of 5th Street Industrial, a 110,000-square-foot industrial building at 3405-3445 S. 5th St. The deal bolsters the rapid recovery of Phoenix industrial space in the 50,000–150,000-square-foot range, as highlighted in the first quarter Phoenix Industrial Report released last week by JLL's local research team.
JLL managing directors Mark Detmer and Bo Mills were the industrial capital markets brokers involved with the sale between the property seller, Clarion Partners, and the property buyer, DCT Industrial Trust. JLL executive vice presidents Pat Harlan and Steve Sayre, and associate Kyle Westfall, are the project's local market leasing brokers.
“This size and type of Phoenix industrial space is definitely outperforming the larger blocks of space in the local industrial sector,” says Detmer. “That is not to say that other blocks of space haven't entered the recovery cycle. They just haven't done so at this same rapid clip.”
According to JLL's most recent research report, Phoenix's Q1 industrial absorption—totalling 829,777 square feet—was driven primarily by users in the 50,000 – 150,000-square-foot range. Leasing activity among this user type has increased in lockstep with the recovering economy. Built in 1986, 5th Street Industrial includes 26-foot clear height, grade- and dock-level loading, and A-2 zoning on 6.55 acres.
“The 5th Street Industrial asset is irreplaceable for a number of reasons,” says Sayre. “It has an excellent location west of the I-10 in the heart of the Airport submarket. It is fully leased to a long-term credit tenant, and it was priced at a point that allows the new owner, DCT Industrial Trust, to take advantage of some strong investment upside potential. This is a compelling combination.”
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