PHOENIX—After an extensive eight-month site selection effort by city officials, Daikin Applied confirmed it will relocate its Phoenix operations along with approximately 50 manufacturing and management employees. The firm will move from its current location near I-10 and 35th Avenue to a 57,000-square-foot, new-build project on West Lower Buckeye Road, within the Riverside Tax District. The new building is situated at 4940 W. Lower Buckeye Rd., between 49th and 50th Avenues.
"We are working to make Phoenix the best city for doing business," said Phoenix mayor Greg Stanton. "It's great to know our efforts are paying off and that Daikin will continue to call our community home."
JLL managing directors Jim Sadler and Bill Honsaker led the strategic plan, plant operations and planning, and multi-market site selection process for Daikin Applied. During this process, JLL managed competing site opportunities from local and national municipalities including the city of Phoenix, which will provide expedited plan review and workforce development services to Daikin.
Sadler tells GlobeSt.com: "Arizona's manufacturing and technology companies bring tremendous benefit and stability to the state, including expanding job creation. Having a forward-thinking company like Daikin complete a national search and opt to expand in Phoenix is a nod to our strong market fundamentals and the pro-business attitude of our leaders, both of which paint a great picture for our future in the manufacturing and technology sectors."
According to JLL, Daikin's unique requirement and specific needs were met by the 4940 building–a project that is still under construction and can accommodate additional structural modifications, including increased clear height in key areas to precisely meet Daikin's long-term needs.
"Daikin is pleased that we found a location that supports our needs to design and manufacture advanced HVAC technology for our clients who choose to rely on modular central plants," said Tom Edwards, general manager, Phoenix Daikin. "The support and partnership we experienced with JLL and the city of Phoenix were key to our success in discovering and finalizing a Valley property that met our needs as we continue to grow this part of our business."
Daikin is scheduled to move into the 4940 building upon construction completion during first quarter 2016. At build-out, the project will total approximately 57,000 square feet with 6,000 square feet of office space. Building features will include 50-foot clear height ceilings, large bridge crane systems, multiple truckwells and grade level loading positions, light industrial zoning and a large lot that can accommodate potential expansion.
"Daikin's choice to stay in Phoenix is not only a 'win' for our city; it's a strong addition to our team of national businesses that call the Valley home," said Phoenix councilman Michael Nowakowski. "Daikin's new commercial property highlights District 7 as a prime location. Our valuable amenities are exactly what businesses are looking for in terms of growth and expansion."
Indeed, Greater Phoenix is enjoying year-over-year growth and expansion with continual job recovery, corporate relocation and expansion, and population growth. Though the region's recovery has been muted since the recession, forecasts call for the current momentum to continue through 2017, exceeding national levels. In preparation for the RealShare conference in Scottsdale, AZ next month, several local leaders are expected to discuss trends in the current marketplace and insights on the current tempo of growth.
A panelist at the upcoming event, Andrew Cheney, CCIM, SIOR, principal at Lee & Associates Arizona, tells GlobeSt.com: "There is a lot of interesting industrial news in the area, including why Zenefits, State Farm and Yodle are betting on Tempe and South Scottsdale to grow their businesses."
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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.
