Tag Archives: phoenix industrial

3148 N. 38th Drive - PR Photo, WEB

Quality Bedding Inc acquires industrial building in Phoenix

DAUM Commercial Real Estate Services announced that it represented the buyer in the purchase of a 13,178 sq. ft. industrial building located in Phoenix.

Trevor McKendry of DAUM’s Phoenix office represented Quality Bedding, Inc. in this sale. The building is located at 4132 N. 38th Drive.

Quality Bedding, Inc has been manufacturing bedding for over 20 years and plans to
continually grow their operations with the recent acquisition.

John Reinhardt of Industrial Property Specialists sold the property on behalf of IPSDBP5 Investment, LLC, and is a member of the selling entity.

hayden_ferry_lakeside

Cassidy Turley releases Q2 ‘Market Snapshots’

Cassidy Turley has released its Q2 market snapshots for Phoenix.

The brokerage firm reported the following market trends: “The metro Phoenix economy continues to post positive gains, adding 24,000 net new jobs year-over-year through the second quarter 2014 with a total employment base of 1,830,000 jobs. Moody’s recently raised its employment forecast for year end 2014 and now expects 40,600 net new jobs this year, compared to 38,600 net new jobs originally forecasted at the beginning of the year. As employment levels rise, the metro Phoenix unemployment rate improved year-over-year, declining 110 basis points to 5.9%. The metro Phoenix unemployment rate continues to outperform the national unemployment rate of 6.1%.”

Office

Highlights: Office vacancy has dropped below 20%, a first since 2008. At the end of Q2, 2.18MSF of office property was under construction. Four new projects broke ground, three of which were speculative construction (Chandler 202, Hayden Ferry III and Chandler Corporate Center).

Industrial

Quick Hit: By the end of Q2, nearly 3MSF of industrial property was under construction. During the quarter, 10 new projects broke ground (half of which were build-to-suit).

Retail

Highlights: At Home and Hobby Town’s occupation in the northwest Phoenix submarket contributed significantly to 460,845 SF of positive net absorption in Q2. Vacancy declined 10 basis points, finishing the quarter at 12.1%. Year-end net absorption is expected to be 2.5MSF and vacancy to drop below 12 percent, which hasn’t happened since 2009.

2500 E Chambers Street

CPI sells 100KSF manufacturing building in Phoenix

Commercial Properties, Inc., Arizona’s largest locally owned commercial real estate brokerage,  announced the sale of a 99,969 SF industrial property located at 2500 E. Chambers St. in Phoenix. Jeff Hays, Chad Neppl and Ryan Steele of CPI’s of Tempe Office represented the seller, BH Chambers, LLC in this transaction.

The concrete tilt building was built in 1995 on ± 6 Acres in the South Airport Industrial Submarket. The single-tenant property is located just South of Roeser Road and East of 24th Street in Southern Garden Industrial Park.

Chad Neppl commented, “The Buyer, District Photo, required a quick close in order to get a jump start on their improvements for their upcoming peak holiday season.”  The ±100,000 square foot building met the buyer’s requirement for their production use.  This transaction was a win-win for both parties.”

The sale was valued at nearly $5.2 million.

Oblique & Renderings of Airport I-10-1

Groundbreaking Arrives for Phase I of Airport I-10 Business Park

Groundbreaking day has arrived for the first phase of Airport I-10—a Wentworth Property Company/Clarion Partners Class-A industrial project being leased by the Phoenix office of JLL that, at completion, will represent one of the largest Sky Harbor Airport-area speculative industrial developments in Phoenix history.
Located at the northwest corner of 24th Street and Rio Salado, Phase I of Airport I-10 Business Park includes three Class A industrial buildings totalling more than 600,000 square feet (277,954 square feet, 169,109 square feet and 156,000 square feet). Phase I of the project is slated for completion in the fall of 2014. At build out, the 58-acre site will comprise five Class A industrial buildings totalling 920,584 square feet.
“This is the last large, developable parcel left in the Sky Harbor International Airport submarket—an area that consistently ranks among the Valley’s top industrial locations,” said Wentworth Property Company Principal James R. Wentworth. “Airport I-10 is already garnering great interest. With Phoenix’s continued population and job growth, we expect this demand to do nothing but rise in the years ahead.”
According to JLL research, the Sky Harbor Airport submarket absorbed approximately 1 million square feet of industrial space last year—almost 30 percent of the more than 3.5 million total square feet of industrial space absorbed Valley-wide in 2013.
Airport I-10 will offer a modern environment for corporate users and will be fully equipped with state-of-the-art features such as ESFR sprinkler systems, 30- to 32-foot clear heights, cross-dock loading and 140- to 200-foot truck courts.
“About 90 percent of the buildings in the airport submarket were built before 2000 and lack the modern features that today’s users are looking for,” said JLL Executive Vice President Pat Harlan, who serves as an exclusive leasing broker for the project along with JLL Executive Vice President Steve Sayre, JLL Associate Kyle Westfall and JLL Managing Director Mark Detmer. “Airport I-10 delivers those benefits at a central location—a site that is truly at ‘main-and-main’ for industrial real estate.”
“Users are looking for space in the 50,000- to 300,000-square-foot range and there simply isn’t the product to accommodate that demand,” said Harlan.

CFA Cabinetry, WEB

CFA Cabinetry Relocates to 64KSF Space in Southwest Phoenix

CFA Cabinetry, a wholesaler of kitchen and bathroom cabinetry, is nearly doubling its warehouse and distribution space with a relocation to 420 S. 53RD Ave.

 

Cushman & Wakefield of Arizona, Inc. negotiated a five-year lease relocating CFA to a 63,840 SF facility. The company is expanding and relocating on May 1 from its 32KSF facility in Deer Valley at 1725 E. Williams Rd.

 

“The relocation to a larger facility will allow CFA Cabinetry to grow its business,” said Keri AmRhein-Scott of Cushman & Wakefield. “With the continued rebounding of the housing industry, the Southwest Valley will continue to do well as companies like CFA absorb more space.”

 

AmRhein-Scott and John Grady of Cushman & Wakefield represented CFA Cabinetry in the lease transaction. Overton Moore Properties of Gardena, Calif., the landlord, was represented by Stein Koss of Lee & Associates. The lease brings the property to 100 percent occupancy.

3rd Quarter Figures Upbeat for Retail and Market Sector

3Q Figures Upbeat For Office, Industrial & Retail Market Sectors

The Arizona economy has marked some improvement and is much better than the public perceives, according to the Third Quarter 2010 Economic Outlook released by the Forecasting Project at the University of Arizona.

However, the report also states that will it will take some time for many Arizonans to recognize the improvement in the state’s economy and to repair the damage done by the recession. Estimates are that it will be 2013 or early 2014 before all the damage that occurred during the recession is repaired. The long-term forecast is for nation-leading growth to return to Arizona.

There was also some positive news in the CB Richard Ellis Third Quarter 2010 Analysis of Metro Phoenix Office, Industrial and Retail Markets. Highlights included:

Office: After 12 consecutive quarterly increases, the office market vacancy rate remained unchanged from the second quarter, at 25.9 percent. While the full service average asking lease rate for office space has leveled off in 2010, it has fallen 12.5 percent in the past two years, from $25.44 per square foot in third quarter 2008 to $22.25 per square foot today.

Absorption for the year is 147,610 square feet, with gross activity of 4.3 million square feet. This compares with negative absorption of 897,916 square feet and gross activity of 2.9 million square feet at the same time last year. An increasing supply of office sublease space continues to impact the absorption of direct space. There was 2.2 million square feet of available sublease space at the end of the third quarter compared to 2 million square feet one year ago.

Industrial: Through the first three quarters of 2010, the Metro Phoenix industrial market had positive absorption of 2.6 million square feet. Leading the way was the Southwest submarket, with more than 3.4 million square feet of positive absorption year-to-date. The industrial market vacancy rate decreased for the second consecutive quarter, dropping from 16.4 percent at the end of the first quarter to 15.3 percent today. One year ago the vacancy rate was 15.8 percent.

The net direct average asking lease rate for existing industrial product remained relatively unchanged during the past three months, ending the third quarter at $0.54 per square foot. However, in the last year the rate has dropped 5.3 percent. While there is 619,800 square feet of industrial product under construction, it consists entirely of build-to-suit projects. No speculative developments broke ground in the third quarter. This trend is expected to continue due to the challenging financial market and the glut of space.

Retail: The retail market experienced positive absorption in the third quarter, posting 83,491 square feet. This was the first time in seven consecutive quarters that the metro area reported more retail space was gained than lost. Vacancy increased slightly in the third quarter, from 12.2 percent to 12.3 percent. In comparison, the retail vacancy rate one year ago was 10.9 percent.

The average net asking lease rate for existing retail centers has declined 9.4 percent since the end of 2009, dropping from $17.33 per square foot to $15.71 per square foot at the end of the third quarter. The large supply of available big box space continues to weigh heavily on the Phoenix area retail market. Currently there are 303 spaces greater than 10,000 square feet, totaling 8.2 million square feet. The majority, 34 percent, can be found in the Mesa/Chandler/Gilbert submarket, with 2.8 million square feet of space.

Real Estate - A Changing Landscape

Some Of The Troubles Facing The Real Estate Sector Today Ring Familiar

The landscape of the Valley’s real estate market in the mid 1980s was vastly different from today, but, as most developers are painfully aware, many of the challenges are markedly the same. What is different today is the solid foundation that has been built over the past 25 years, which has helped the Valley remain an extremely attractive place for businesses and residents to call home.

Twenty-five years ago, the biggest challenge in the market was tied to the fact that we had virtually no transportation infrastructure. Commuters today might have more traffic to contend with, but at least we have more freeways. In the mid-80s, drivers had long and incredibly laborious commutes to an employment base that was quite limited in variety. Of course, 25 years ago, a commute into Phoenix from Surprise, Goodyear, Gilbert and El Mirage was unheard of.

The Valley’s expanded transportation infrastructure has opened up all of these new submarkets and allowed for an effective and functional distribution of goods and population. The I-10 was finally completed through Downtown Phoenix in 1990. The Scottsdale Airpark has grown into the second-largest office submarket in the Valley. Highway 51 and the loops 101 and 202 were constructed.

Our metro area has now grown so large in size and population that companies and retailers have multiple locations and stores. Larger warehouse facilities were built on the west side of the metro area near the I-10 transportation corridor. We began to see mixed-used projects of a large scale. The Phoenix industrial market benefited from steady job growth, great positive inward migration and affordable housing.

In addition, the Arizona Department of Real Estate has played a major role in planning future growth, establishing land values, encouraging competition and adding substance to our educational trust fund. The growth of local, competent developers in every development discipline has also contributed to shaping the sector.

But the major challenge today, like that of 25 years ago, is an abundance of available space coupled with a very low level of tenant activity. Based on typical annual absorption rates, new speculative construction will take another two-to-three years to occur. Dramatically reduced valuations are another major problem affecting all of commercial real estate. No one knows what anything is really worth. This, coupled with the lack of capital for permanent financing, has brought development to a halt and continues to negatively impact values. Add high unemployment, slow retail sales and difficulty in home sales, and you have a very long pause that seems vaguely familiar to the situation of the 1980s.

However, pauses end. There is definitely a bright future ahead for Valley real estate. Unlike the 1980s, today we have excellent infrastructure we can build upon to rise out of this crisis much more quickly and effectively. What’s more, people will still want to move here. We will benefit from relocated businesses and jobs as other states tax and regulate their economies to the extreme. This slowdown is temporary. But we have to remember that Arizona will continue to attract businesses and residents, and we must stay poised to develop opportunities for them as they become more available.

Southwest Valley Commerce Center, AZRE July/August 2008

Industrial: Southwest Valley Commerce Center


SOUTHWEST VALLEY COMMERCE CENTER

Developer: Panattoni Development Co.
General contractor: Nitti Brothers
Architect: Ware Malcomb
Location: Buckeye Road & 83rd Ave., Phoenix
Size: 241,325 SF on 17.28 acres

The $25 million, industrial project consists of two large buildings, which being built for small to mid-size bay warehouse/distribution space. Panattoni broke ground on the project April 2008 for a January 2009 completion. Broker: Grubb & Ellis

AZRE July/August 2008