GLENDALE, AZ-At first blush, ZyTech Building Systems' recent $5.5 million buy of 19,000 square feet on 27 acres might seem like a straight industrial deal. ZyTech, a Canadian manufacturer and distributor of roof trusses, lumber and floor and wall systems for the homebuilding industry (as well as for multifamily and large commercial projects) acquired the former site of Shuck & Sons Construction Co., a construction framer that was a casualty of the recent downturn.

But the question arises as to whether ZyTech's presence at 8205 N. 67^th Ave. might represent something bigger. Like more suppliers to the homebuilding industry returning to the Phoenix metro region after being away for awhile.

Certainly single-family permitting in the Valley of the Sun tells an interesting story – analysts predict there could be as many as 20,000 permits pulled to build single-family homes this year. Phoenix is a construction-based town – when homebuilding is on the upswing, so is activity among industrial and office product, as suppliers and trades come into town to buy and lease. Experts are divided, however, as to whether ZyTech's acquisition is part of an overall trend of trades and home component suppliers returning to Phoenix.  Local reports point out that the company will eventually create 300 jobs locally as it becomes a supplier to homebuilders and commercial developers.

"ZyTech is component builder," comments Sean Gillespie with Nathan & Associates Inc., who represented ZyTech in the acquisition from Sundt Cos., which had, in turn, acquired the property through deed-in-lieu in 2010.  Gillespie tells GlobeSt.com that it took awhile for ZyTech to find the right space, and the company will be moving in as soon as possible. "You'll see more of those companies coming here, and more of the trades coming back, such as plumbers and framers and electricians," Gillespie notes.

Chaz Smith with Colliers International's local office, who was not involved with the ZyTech transaction, echoes Gillespie's comments, telling GlobeSt.com that the truss-builder is coming into the market at the right time because demand for all kinds of housing – multifamily and single family homes – is starting to skyrocket. "People are moving into town for jobs, apartment occupancy is as high as it's ever been," he observes. "Single-family homes are far behind." He acknowledges that the increase in land costs might be problematic to building, however.

But another broker uninvolved with the ZyTech transaction, T.J. Swearegen with Lee & Associates, is a little more skeptical. In examining the situation the point of view of industrial product being either leased up or bought by builder tradesmen, he says not a lot of that is happening right now.  He tells GlobeSt.com he's sold a couple of truss facilities during the past couple of years and "neither one of those properties were going to be used as truss facilities," he notes. "One buyer was a speculator and the other buyer wanted to turn it into an RV storage yard." The  ZyTech sale, he goes on to say, is the first large one he's seen sold.

It isn't to say that ZyTech isn't reading the market correctly, however, or that its entry into the region is too soon. "Locally owned lumber guys have started truss companies, and we're seeing more of a regional market in that," Swearengin says. "As soon as things really do pick up (ZyTech) will be an up and going operation."