The three-building project along West Van Buren Street, developed by EJM Development Co. of Scottsdale, broke ground earlier this month and is expected to be fully leased within 18 months of its May completion, Pat Feeney with CB Richard Ellis' Phoenix office, tells GlobeSt.com. "We've already had some good preliminary activity," Feeney says of the development, which will place designs of 53,454 sf, 71,152 sf and 97,682 sf at the 99th Avenue and Van Buren Street site.
Despite a glut of unoccupied industrial buildings in the Valley which has kept the overall vacancy rate at around 10.5%, Feeney says he anticipates no problems with lease-up since few industrial buildings cater to smaller users, an underserved segment of the market. "Most of the vacancy in the Southwest submarket consists of large bay distribution facilities that don't divide down to smaller than 50,000 sf," he says, noting the complex will contain spaces of 2,600 sf to 25,000 sf for 30 cents per sf to less than 50 cents per sf.
The complex was designed by Euthenics Architecture of Phoenix and is being built by DL Withers of Phoenix. The project, which will cost $8 million to $10 million to build, will feature heavy power, a state-of-the-art sprinkler system, large truck courts and bays along with high visibility along Van Buren Street. Both Feeney and Dan Calihan, also with CBRE's Phoenix office, will handle marketing and leasing activities for the project.
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