Tempe Developer Jumps on Board Chandler Fast Track

Much of the activity is ticketed in and around the Williamsfield Road Industrial Park, where a Tempe family trust is readying for a 40,000-sf ground-breaking on a spec project and EastGroup Properties of Jackson, MS is laying groundwork for a 65,000-sf building.

Kendler Family Trust has just paid $590,000 for about 3.2 acres in the developing industrial park. Some 500,000 sf of industrial product is planned or under way for a two-mile radius in the next 12 months by a multitude of developers.

Kendler will break ground in 90 days, with an eye on a fourth quarter delivery. Bob Winton of Phoenix has designed the 40,000-sf building while Tempe's Sun State Builders has landed the general contractor's award. The undertaking marks Kendler's first foray into the Chandler market, Paul Sieczkowski, Colliers International's senior vice president, tells GlobeSt.com. He and marketing associate Rob Martenson brokered the land sale for buyer and seller, Chicago & Beck LLC of Phoenix.

Williamsfield Road Industrial Park holds several keys to its present and future demand: close to the planned San Tan Freeway, the southernmost development gate to the Gila Tribe Reservation and the Ahwatukee Foothills' strong coming out in retail and residential growth.

In April 2001, EastGroup, known for clustering its holdings, bought 4 1/2 acres in Williamsfield Road Industrial Park. Meanwhile on the south side of the planned freeway, Minneapolis-based Ryan Cos. is starting work on a three-building, 150,000-sf industrial project for a Q2 delivery. Ryan's full build-out will bring 800,000 sf.

Sieczkowski says West Chandler laid dormant for a long time, but that's changed dramatically. In 2001, some 13 million sf of gross absorption took place, with 2.7 million sf of net absorption, he says. Industrial vacancy rang up 7 1/2% at the year's close in comparison to 9.7% in metro Phoenix.

The corridor, however, isn't escaping sublease woes, racking up 800,000 sf for Tempe, Mesa and Chandler. Still, it's a far cry from the two million sf of sublease space available in metro Phoenix.