Creation, one of the country’s leading commercial real estate developers, broke ground yesterday on Thunderbird Commerce Park, a $60 million industrial center set on a rare 18-acre parcel within Scottsdale Airpark.
The developer commemorated the milestone by hosting a celebratory groundbreaking event with Scottsdale Mayor David Ortega in attendance, joined by the city’s council members. Creation’s affiliated nonprofit, the David R. Sellers Foundation, donated $20,000 to the Arizona Cancer Foundation for Children as part of the ceremony.
“Finding land for industrial and logistics development in Scottsdale is next to impossible, so Thunderbird Commerce Park is already in a class of its own, bringing much-needed Class-A logistics/manufacturing inventory to the highly desired Scottsdale Airpark submarket,” said Grant Kingdon, principal of Creation’s Mountain West Region. “This area is highly supply-constrained and typically boasts the highest rental rates and tightest vacancy levels in the Phoenix-metro market. However, the existing industrial inventory consists of older-generation buildings that don’t meet the needs of modern industrial tenants and are, in many instances, functionally obsolete. The building has features that will attract a variety of tenants in the pharmaceutical, aerospace, electric vehicle and semiconductor sectors, plus traditional distribution and showroom users.”
With a vacancy rate hovering around 3%, coupled with the scarcity of supply under construction, Scottsdale stands as the tightest industrial submarket in the Valley, according to Pat Harlan of JLL. The supply-constrained city boasts the highest asking rates in the region, a 65% premium compared to the Phoenix-metro average.
“Beyond its compelling vacancy rates and unprecedented asking rates, Scottsdale’s appeal lies in its strategic location and the myriad of economic opportunities it affords businesses,” added Harlan. “Scottsdale offers an advantageous position for companies looking to enhance their logistics and streamline their supply chains. It’s also established itself as a thriving business hub, attracting diverse industries seeking a robust ecosystem to grow and flourish. The presence of leading tech companies, innovative startups and established corporations further enhances the region’s appeal and drives demand for industrial space.”
Thunderbird Commerce Park is a 243,360-square-foot, Class-A industrial building located east of the southeast corner of Scottsdale and Thunderbird roads. With direct adjacency to the Scottsdale Airport, building features include 51 truck doors, 32-foot clear height, 3,000a power, 4 EV dual charging pedestals, 130-foot truck court depth and 322 car spaces. Creation has engaged award-winning LGE Design Build as the general contractor and LGE Design Group as the architect. Completion is expected in late 2024.
Founded by David Sellers and Bob Agahi in 2018, Creation’s portfolio includes $4.4 billion of ground-up developments in major growth corridors of Arizona, Texas, California, Tennessee, New York and New Jersey. Additionally, Creation remains very active throughout the Phoenix Metro area with several new developments underway, including the development of Ten85 in Buckeye, Nexus Commerce Center in Tempe, Midway Commerce Center in Chandler and Park Algodon in Phoenix. In total, these industrial developments cover over 6.5 million square feet with a value of over $1.5 billion. For more, visit CreationEquity.com.