The warehouse is owned by EastGroup Properties, a Jackson, MS-based REIT with industrial properties in the major Sunbelt states of California, Florida, Texas and Arizona. Payson and Don MacWilliam, managing directors of Insignia/ESG, represented both sides of the deal. "Superior Hardwoods needed more space and wanted to stay in the West Valley," says Payson MacWilliam. "They also had some special requirements, including a significant amount of outside storage and rail access." No one's disclosing the lease's length.
An Insignia/ESG contact says Superior Hardwoods is relocating from a nearby facility, in keeping with the heavy industrial character of this section of West Phoenix. The rail access and full acre of outside storage played prominently in the decision, the contact tells GlobeSt.com.
Superior Hardwoods has elected to remain in one of the region's better performing submarkets. Vacancy is 7% vacancy, with just 1.8 million sf available. First quarter absorption was 280,164 sf. And, there's no new product is coming on line in the near future, according to Cushman & Wakefield of Arizona Inc.'s first quarter industrial analysis. The average weighted net rent is 39 cents per sf. With all of its pluses, the 25-million-sf inventory is ranked third in the metro, falling behind the Southwest Phoenix and North Tempe submarkets.
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