The Mack Co. began construction last month on two buildings, 57,764 sf and 135,602 sf, for developer Renaissance Cos. on a parcel located at 15th Lane and Rose Garden. "What we're seeing is that because of the easy access to the Loop 101 and Interstate 17, more and more companies want to put their facilities in the Deer Valley market to cover the northwest Valley," Insignia/ESG director Jerry Hillery tells GlobeSt.com.

Deer Valley, with an overall industrial vacancy rate of less than 8%, was one of five out of 16 Valley submarkets that posted positive absorption rates during the first quarter. Hillery said the latest project, slated to be completed by September, will add 193,366 sf of new warehouse and distribution space to that area.

"There is defiantly a high demand for multi-tenant space" in Deer Valley, Hillery said, noting that the Phase I project, dubbed Mack-Deer Valley, will also include much in-demand features such as individual truck courts, truck wells and grade-level doors in each bay along with ESFR sprinkler capability. The project also boasts a prime location within a half-mile of four, full-diamond freeway interchanges, he noted.

Although no tenants have yet signed to rent the multi-million dollar facility, Hillery predicts interest will be strong with lease rates of up to 60 cents per sf triple net. He along with Insignia/ESG senior managing directors Bob Lundstedt and Ashley Brooks and associate Michael Kitlica, will serve as leasing agents for the property.