Phoenix is getting itslargest speculative office building yet. TrattProperties is building Elwood Logistics Center, a 1.3million-square-foot class-A industrial facility in Goodyear,Arizona, a qualified opportunity zone. The project is the largestspeculative industrial project to ever break ground in the PhoenixValley, and a sign of the growth in the market.

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"As the world's 29th largest economy with almost $25billion in exports last year, Arizona has become a supply chaindynamo," Anthony Lydon, managing director at JLL,tells GlobeSt.com. "The Phoenix/Goodyear region's strategiclocation between Mexico and the ports of SouthernCalifornia—combined with the recently passed UnitedStates-Mexico-Canada Agreement—is creating an accretive impact onoccupant demand for manufacturing and B-to-B fulfillment space. Italso drives jobs. Arizona has more manufacturing jobs thanconstruction jobs."

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There is growing demand for quality, bug box facilities, likethis in the Phoenix area. "This project is notable not only asArizona's largest speculative industrial space but also a projectoffering very attractive speed-to-market timing," says Lydon. "Itsyear-end shell completion will create a unique scenario formulti-state providers looking for a deep, affordable and qualifiedworkforce."

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The project is located on 83 acres at Sarival Avenue and ElwoodStreet, and will target major logistics, manufacturing, food andbeverage, and e-commerce users. The property will feature 40-footclear height, cross-dock building with a 190-foot gated and secureconcrete truck court and 235 dock-high loading positions. The siteprovides parking for more than 1,400 cars and 327 trailers. "Thevision for this project is to be the space solution for hundreds,if not thousands, of new jobs. The impact could be exponential,"says Lydon.

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Large speculative developments always raise eyebrows,particularly in a market like Phoenix that has had historicaloversupply problems. However, Lydon says that the market cansupport this size industrial development. "Last year metro Phoenixabsorbed almost 12 million square feet of industrial space withover 75% of that absorption occurring in the West Valley," hesays. "The market will deliver 6 million to 8 millionsquare feet of new industrial space in 2020 offering not only largeprojects but also smaller, mid-sized and scalable solutions thattogether will give occupants modern, state-of-the-art facilitiesthat will enable timely service and fulfillment to California,Mexico and other Western U.S. states. Vertical markets such asmanufacturing, ecommerce, healthcare, regional distribution, food& beverage, aerospace, third party logistics and others areextremely active here and continue to push the need for additionalspace inventory throughout the region."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.