After an eight-month site selection effort led by the Phoenix office of JLL and the City of Phoenix, Daikin Applied will continue to design and manufacture advanced HVAC solutions in the Valley. In a lease signed this week, Daikin confirmed it will relocate its Phoenix operations and approximately 50 manufacturing and management employees 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 in Phoenix. The facility will support Daikin’s regional offices, operations and manufacturing of Modular Central Plants, a pre-engineered and assembled HVAC solution for commercial, institutional and mission-critical facilities to deliver a high efficiency climate control, lower operating expense and reliable total building efficiency.

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, a member of Daikin Industries, the world’s leading manufacturer of air conditioners and refrigerants. 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.

“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.”

“The search for the most strategic facility for Daikin took us from Arizona to the East Coast and back,” said Sadler. “Ultimately, Daikin selected Phoenix, based on a building that met its precise needs and the characteristics that this market is known for – business friendly, low cost of doing business, quality of life and superior employees. Daikin’s decision is a great ‘win’ for the Valley.”

“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.”

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 Q1 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’ 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.

Mark Krison of CBRE represented the building owner, Mike Orr of SunCap Property Group, in the lease transaction. North Carolina-based SunCap purchased the 4940 building this month, and plans to complete approximately $3 million in special-purpose improvements.