PHOENIX—Identifying prime distribution space in the Southeast Valley, the Cushman & Wakefield of Arizona leasing team of Jackie Orcutt, John Grady, and Mackenzie Ford recently closed five tenant representation deals totaling 76,734 square feet.
The leases range in size from 3,744 square feet to 26,023 square feet across the Southeast Valley.
Grady, a director in the industrial properties group, tells GlobeSt.com how these transactions reflect the Southeast Valley market on the whole: “The market is very active with many occupiers growing and expanding. I see a lot of the best industrial space becoming scare until new development delivers. With limited inventory of functional inventory there are not as many concessions available to tenant that are signing new deals. It has become increasingly difficult to find space with ample clear height and dock-high loading south of the US-60 in the Southeast Valley.”
The Southeast Valley tenants include: MyCom, long-term lease at 315 S. Bracken Lane, Chandler; Executive Management Services, long-term lease at 607 S. 48th St., Tempe; SolarCity, long-term leases at 566 E. German Rd., Gilbert; and 7931 E. Pecos Rd., Mesa; Clean Energy Constructors, long-term lease at 1888 E. Broadway Rd., Tempe.
“We are excited to see an increase in pure industrial activity in the Southeast Valley,” says Orcutt, market leader, investor services. “New speculative construction from industrial developers such as EastGroup Properties, Trammel Crow, and Turner Construction is timely as demand continues to strengthen east of the I-10 and south of the US-60.”
According to Cushman & Wakefield research, the Southeast Valley has delivered 109,540 square feet of speculative development in 2014. There are plans for an additional 265,000 square feet of speculative industrial product to be delivered to the market in the coming 12 months.
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