A major two-building, $18.7 million Phoenix industrial portfolio purchased by Colony NorthStar in May has achieved 100 percent occupancy in less than four months, thanks to a final lease for 58,306 square feet completed this week by Phoenix office of JLL with retail security device developer InVue.
InVue will locate into its new space within the Reywest Commerce Center, located at 3602 W. Washington St. in Phoenix, by the end of the year. It joins fellow new tenant Aquafil, a global fabric manufacturer who committed to 116,890 square feet at 3555 W. Washington St. in Phoenix. The Aquafil building is part of the same Colony portfolio and located directly across the street from InVue.
JLL Managing Directors Anthony Lydon and Marc Hertzberg, and Vice President Riley Gilbert represented Colony NorthStar in both new leases.
“Each of these deals is a reflection of our rising Phoenix industrial market, where vacancy rates are at a 10-year low and absorption is on pace to reach an all-time high,” said Gilbert. “The combination makes the Colony NorthStar portfolio an absolute home run for both the owner and its new tenants.”
InVue, which distributes security products for video production businesses, retail music chains and the home office segment, will use the new space for its West Coast distribution facility.
In September, Aquafil announced that it would invest $10 million in its new Phoenix building for a U.S. carpet recycling operation that converts Nylon 6 material into raw material that can be used for the production of textile products such as sportswear, swimwear and carpets.
The Colony NorthStar buildings are an institutional-grade asset featuring 30’ clear heights, dock high loading, ESFR sprinklers and a premier location within one mile of a full diamond interchange along I-10. Other tenants within the portfolio include Del Monte Fresh and Hadrian.
According to JLL’s recently released Q3 Phoenix Industrial Insight report, the Phoenix industrial market is on pace to hit an all-time high absorption record thanks to well-rounded market activity from companies of all sizes and from sectors that include, but are not limited to, manufacturing, high-tech aerospace, e-commerce, food packaging, nutraceuticals and logistics and distribution. The last peak came in 2005, when the market absorbed 7.9 million square feet of industrial space during a single calendar year.