PHOENIX-A regional headquarters relocation and expansion has led to 100% occupancy for the 435,000-sf Tolleson Commerce Park. Docu-Safe of Phoenix has taken down 66,436 sf in a $3-million, 10-year-plus lease at the flex center.
The two-building Tolleson Commerce Park was built on a 30-acre tract at 5 S. 84th Ave. in 2000 by Opus West. It was acquired in 2005 by TIAA, which has Tony J. Lydon and Marc D. Hertzberg, senior vice presidents with locally based Grubb & Ellis/BRE Commercial LLC, leasing the asset.
Lydon says Docu-Safe took advantage of a good, competitive rate in a market that is seeing tightening vacancies when it comes to industrial and flex product. The company moved over the weekend from 30,000 sf at 1002 S 63rd Ave., about five miles northwest.
"Lease rates have moved between 30% and 50% in Phoenix during the past year," Lydon tells GlobeSt.com. "This is good, modern second-generation space. The tenant recognized a good value proposition and locked into it." He says the tenant examined a variety of spaces, but "there isn't much choice out there for users in the 40,000-sf to 60,000-sf range." Stein Koss with Phoenix-based Lee & Associates represented Docu-Safe.
Lydon says that with the property stable, TIAA had some thought about putting it back on the market. However, there are several leases rolling in the next year so the property will remain in the New York City owner's portfolio for awhile longer. "Given the increasing rents in the market, there's a good value opportunity here," he adds. "We'll want to retain the current tenants at a 40% to 50% increase in rates."
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