CapRock Partners Has Big Plans for Phoenix

The pandemic isn’t deterring investment in Phoenix, at least not for industrial investor CapRock Partners. CapRock has pinpointed Phoenix as a target market for industrial investment and development, and it expects the market to continue to benefit from longstanding population and job growth trends, despite the pandemic.

“The demand drivers of Phoenix are very attractive to us,” Bob O’Neill, SVP of acquisitions of CapRock Partners, tells GlobeSt.com. “Last year, Phoenix had the highest population growth in the country, and that drives strong job growth. A lot of companies are moving to the Phoenix MSA because of affordability, high quality of life, good labor force and a business-friendly local government. We have continued to see strong growth and strong interest from tenants that are expanding and new companies that are relocating to Phoenix.”

While these demand drivers were in place long before the pandemic, O’Neill says that the pandemic has brought a new set of drivers that make the market attractive for investment. “We look at the factors that are driving that growth, he says. “We are anticipating future demand from ecommerce users and retailers that survive this pandemic that are going to need additional logistics space.”

CapRock recently expanded its foothold in the market with the acquisition of two new, state-of-the-art industrial buildings. With these two purchases, the firm now has a 1 million-square-foot portfolio in the market. “These are both brand new buildings, and they are state-of-the-art with high clear heights,” says O’Neill. “Each of the buildings could accommodate a single tenant or two to four tenants to have a lot of flexibility to meet the market and meet demand. The McDowell building has frontage on the I-10 freeway, and the freeway wall is very prominent. That will provide future tenants with incredible signage opportunities a long the I-10.”

The company plans to build on these recent acquisitions as well as pursue development opportunities. “We are buying additional existing properties in the market and we are working on additional development opportunities,” says O’Neill. “We will develop new industrial buildings in the market. Our prior acquisitions have centered on the Sky Harbor airport area and the Southwest Valley. We are also very interested in the Southeast Valley in Mesa, Tempe and Chandler. We are really working hard to identify other opportunities. That is ongoing, and we have big plans for Phoenix.”