Phoenix’s Biggest Industrial Spec Building Yet Breaks Ground
Tratt Properties is building a 1.3 million-square-foot class-A industrial facility in an opportunity zone.
“As the world’s 29th largest economy with almost $25 billion in exports last year, Arizona has become a supply chain dynamo,” Anthony Lydon, managing director at JLL, tells GlobeSt.com. “The Phoenix/Goodyear region’s strategic location between Mexico and the ports of Southern California—combined with the recently passed United States-Mexico-Canada Agreement—is creating an accretive impact on occupant demand for manufacturing and B-to-B fulfillment space. It also drives jobs. Arizona has more manufacturing jobs than construction jobs.”
There is growing demand for quality, bug box facilities, like this in the Phoenix area. “This project is notable not only as Arizona’s largest speculative industrial space but also a project offering very attractive speed-to-market timing,” says Lydon. “Its year-end shell completion will create a unique scenario for multi-state providers looking for a deep, affordable and qualified workforce.”
The project is located on 83 acres at Sarival Avenue and Elwood Street, and will target major logistics, manufacturing, food and beverage, and e-commerce users. The property will feature 40-foot clear height, cross-dock building with a 190-foot gated and secure concrete truck court and 235 dock-high loading positions. The site provides parking for more than 1,400 cars and 327 trailers. “The vision for this project is to be the space solution for hundreds, if not thousands, of new jobs. The impact could be exponential,” says Lydon.
Large speculative developments always raise eyebrows, particularly in a market like Phoenix that has had historical oversupply problems. However, Lydon says that the market can support this size industrial development. “Last year metro Phoenix absorbed almost 12 million square feet of industrial space with over 75% of that absorption occurring in the West Valley,” he says. “The market will deliver 6 million to 8 million square feet of new industrial space in 2020 offering not only large projects but also smaller, mid-sized and scalable solutions that together will give occupants modern, state-of-the-art facilities that will enable timely service and fulfillment to California, Mexico and other Western U.S. states. Vertical markets such as manufacturing, ecommerce, healthcare, regional distribution, food & beverage, aerospace, third party logistics and others are extremely active here and continue to push the need for additional space inventory throughout the region.”