PHOENIX-Local developer Tratt Properties LLC and KTR Capital Partners of New York City are preparing to break ground on the 1.8-million-sf Riverside Industrial Center. The 100-acre development is the Southwest Valley will cost just under $100 million to develop.
Site work has begun, but the first pouring for the 980,000-sf first phase will be within two weeks. The first space, rising at the intersection of 51st Avenue and Buckeye Road, is scheduled for occupancy at the end of Q1 2007, with the remainder available in the following months.
Grubb & Ellis/BRE Commercial LLC's senior vice president Anthony Lydon says the quoted rents range from 35 cents per sf to $4.25 per sf annually, triple net. "We've had very strong early activity and interest on the project," says Lydon, who with colleague Marc Hertzberg, is preleasing the project.
Lydon tells GlobeSt.com that Riverside Industrial Center, being built on spec, is directed toward users with operational needs north of 100,000 sf. "I certainly expect that by the middle of 2007, we'll be substantially occupied," he adds.
The market statistics seem to favor Riverside Industrial Center's development. The vacancy rate for industrial product hovers 6.5%. Rents have increased 20% to 40% in the past 18 months. "The choices out there with industrial are pretty small, no matter what size you're looking for," Lydon says.
Scottsdale-based Renaissance Cos. is the general contractor for Riverside Industrial Center. Deutsch Associates of Phoenix designed it.
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