PHOENIX—It's the latest example of users shifting away from build-to-suit and toward the Valley's existing, though dwindling, inventory of modern, available space. The latest is a 552,330-square-foot industrial lease located at 7037 W. Van Buren St. that will fully occupy the building. The lease, completed by Lincoln Property Company, is anticipated to bring approximately 200 new jobs to the Southwest Valley.
Amr Ceran, vice president at Lincoln Property Company, tells GlobeSt.com: "It doesn't get much more trademark, quality industrial than this parcel: modern features, very close proximity to Interstate 10 and miles of residential housing—translating into a deep labor pool—just minutes to the north. No other project in the Valley, or the region, so fully checked these boxes and were move-in ready as the tenant required."
The undisclosed distribution user will move into its new space this month and will fully occupy the project. It will use the building to service a major requirement from a distribution-centric Fortune 50 company. JLL managing directors Marc Hertzberg and Anthony Lydon represented Lincoln Property Company. Tom Louer of Lee & Associates represented the tenant.
“This lease is a great example of a positive Arizona industrial market,” said Hertzberg. “This user chose Phoenix after a multi-market search that included Northern and Southern California. It then chose this building, in particular, from among a very competitive local inventory that includes five or six newly constructed, nearby alternatives.”
According to Lincoln Property Company, the new distribution user selected the Van Buren Street property because of its Interstate 10 proximity and the building's existing infrastructure, offering a critical speed to market.
“The 7037 property had virtually all of the needed build-out specifications already in place, including lighting and cooling requirements, existing dock equipment and approximately 10,000 square feet of office space. Competing buildings didn't have those improvements or a Certificate of Occupancy for immediate move-in,” said Ceran. “We were able to work quickly with all parties to take advantage of that benefit.”
Totaling 552,330 square feet, the project offers 31.5- to 35.5-foot clear heights, 57-foot column spacing, 100 truck bays, cross-dock and front-load configurations, energy-efficient lighting and updated electrical, cooling and ESFR systems. It also sits within a foreign trade zone, which represents a significant potential for real and personal property/equipment tax reductions and duty deferral or elimination.
“Phoenix occupies one of the most strategic and cost effective supply chain locations in the West,” said Lydon. “That is a powerful combination for logistics operators.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
