CASA GRANDE—The global logistics company Kuehne + Nagel,Inc. has taken a 201,666-square-foot, five-yearwarehouse/distribution lease in Casa Grande. The lease establishesKuehne & Nagel's presence in the Central Arizona market—agrowing site selection consideration for industrial distributionand logistics users in the Western United States. The Phoenixoffice of JLL completed the transaction.

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“For the right users, Pinal County definitely offers analternative to the high costs of Southern California industrialspace,” says JLL executive vice president PatHarlan, who represented building owner ClarionPartners along with JLL executive vicepresident SteveSayre and JLL associate KyleWestfall.

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Harlan tells GlobeSt.com, “Kuehne + Nagelsupplies third party logistics to Abbott Laboratories, located inCasa Grande, so it was a highly efficient location. Though thesearch for space did include Phoenix, it really made Casa Grandethe best option. Pinal County is seeing interest from manufacturersdue to labor costs, rail, I-10 and access to inbound product fromMexico via Tucson. Creating an inland port environment in andaround Casa Grande—half way between Phoenix and Tucson—would allowcompanies to move their products from California's ports directlyto a more cost effective, inland location, then on to the rest ofthe U.S.”

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According to JLL's Q1 Industrial Report, warehouse/distributionspace in Pinal County has done well in the past 24 months, droppingfrom 17 percent vacancy in 2012 to 13.1 percent vacancy today.Although absorption has remained flat, market recovery is pushingdevelopers to consider new industrial and warehouse projects in thearea.

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“The vacancy trend is due to a solid recovery,” says Harlan. “In2011 through 2013 absorption was mainly larger corporations. Now in2014 we are seeing more regional and local occupiers. It's ahealthier industrial sector. The 50,000 to 200,000-square-footsector is the hottest trend right now. We're seeing users benefitfrom the growing economy and that will continue, especially as thehousing industry catches fire.”

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Kuehne + Nagel's new space is located at 2592 E. Hanna Rd.,approximately five miles southeast of central Casa Grande anddirectly adjacent to Interstate 10. With approximately 63,000employees at more than 1,000 locations in more than 100 countries,the Kuehne + Nagel is one of the world's leading logisticscompanies.

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