GOODYEAR, AZ-A 602,000-sf build-to-suit fulfillment center and two distribution spec buildings with 704,718 sf are starting to go vertical at the 296-acre Goodyear Crossing Industrial Park. Development costs for comparable space are averaging $50 per sf.
Goodyear Crossing's development costs aren't available. However, Macy's Inc. of Cincinnati spent $8.39 million to acquire 35.93 acres for its build-to-suit project. Macy's is the first end-user to buy any of the park's land from the Indianapolis-based developer, Duke Realty Corp. Macy's, formerly a division of Federated Department Stores Inc., recently broke ground on its fulfillment center, with completion planned for early 2008.
The spec construction will begin this month on the 191,938-sf Goodyear Crossing One and 512,780-sf Goodyear Crossing Two. Duke's broker Daniel Calihan, senior vice president in Phoenix for CB Richard Ellis Inc., says the buildings will be on line by February 2008. He tells GlobeSt.com that the quoted rate is 48 cents per sf triple net, with a tenant-improvement allowance of $6 per sf for the smaller building. Goodyear Crossing Two's quote is 36 cents per sf triple net, with a $3 per sf TI allowance.
"We're also marketing lots ranging from two to 100 acres," says Calihan, who represents Duke along with CBRE senior vice presidents Joseph Porter and Patrick Feeney. The team is marketing build-to-suit sites for $7.50 per sf to $12 per sf. If all goes as planned, the park will be built out in five years.
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