North Phoenix, specifically the Deer Valley area, is proving to be a hot spot for industrial real estate, according to DAUM’s Vice Presidents Chris Rogers and Trevor McKendry. As investors continue to choose Phoenix to build and develop properties, Deer Valley ranks high for multiple reasons.
Deer Valley has benefited from strong economic underpinnings as the housing market continues to rise. 2017 was a strong year for home sales in Phoenix, and the North Phoenix market is a testament to this with USAA and Sunbelt Holdings’ Union Park at Norterra residential development underway, along with Taylor Morrison and Pulte’s Sky Crossing. Both developments are within a four-mile diameter of the Deer Valley Airpark submarket and can deliver upwards of approximately 4,000 units. Rogers and McKendry, brokers specializing in Deer Valley, said with an uptick in home sales comes with increasing job growth, access to newer affordable living, and ultimately expansion for companies.
The Northwest submarket ended last year with the lowest vacancy of 6 percent, according to DAUM’s quarterly market report. The remainder of 2018 is poised for a strong outlook with large employers expanding in North Phoenix which already includes reginal headquarters for USAA, Honeywell, PetSmart, Cox, Discovery Card and Farmers Insurance.
The supply of existing buildings is low Valley-wide, so users and developers are consistently looking for land to build. Deer Valley offers newer product for companies looking to relocate or expand. In the past three years, more than two million square feet of new industrial product has been built. Two successful projects to showcase this demand are Desert Gateway and Cave Creek II. Both premier industrial sites have been built by experienced investors and developers. Desert Gateway was the first industrial project in Deer Valley to provide 32-foot clear height, and Cave Creek II, is the first in north Phoenix to have digital signage along the 101 Freeway. Deer Valley offers easy access to everywhere in the Valley as it’s near main freeways including Loop 101, Loop 303, I-17 and Route 51.
The strong property performance and the optimistic outlook will continue to support industrial activity in the months ahead, said Rogers and McKendry.
“With access to a strong employment base across the Valley, new housing nearby, and a range of great retail and dining, Deer Valley continues to be a popular choice for companies relocating or expanding,” said Rogers and McKendry.
DAUM Commercial Real Estate Services provides a full array of services including brokerage, consulting, leasing, sales, corporate services and asset, construction, project and property management. Founded in 1904, DAUM is California’s longest standing and most experienced commercial real estate brokerage company. DAUM has 10 offices throughout Southern California and Arizona. More information is available at www.daumcommercial.com.