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TUCSON, AZ-Four months after wrapping up construction on the first phase of its distribution center, owner Rockefeller Group Development Corp. has leased 17,711 square feet to Towne Air Freight, which signed a 39-month agreement. The company is using space at the 113,000-square-foot speculative distribution center to consolidate other Tucson locations.

Mark Singerman, regional director of Rockefeller Group Development Corp.’s Arizona office tells GlobeSt.com that TIs are almost non-existent in the deal, as Towne Air Freight took one of the already built-out spec suites at Rockefeller Group Distribution Center. “It was space we built out to show. They like what they saw and took it,” Singerman says. “We had to put in a dividing wall, some lights and HVAC, then they were in.”

The lease for space at Nogales Highway (State Highway 18) and Valencia Road was signed earlier this month and move-in has commenced. Towne Air Freight, headquartered in South Bend, IN, offers air, ocean and freight services.

Singerman says the distribution center was set up for smaller tenants. But with the exception of Townd Air Freight, most of the tire-kickers coming around are the larger users. He explains that potential users looking at space are asking about blocks of space that are 25,000 square feet to 50,000 square feet.

The same thing is happening in Phoenix, he continues. There, Rockefeller Group Development finished off its 70,600-square-foot office building at the 24-acre Chandler Corporate Business Center. “Same thing, we built a spec suite there too, figuring it was a small tenant market,” Singerman comments. “We haven’t had anyone small, but we just responded to an RFB for one 50,000-square-foot user, and we also have two 25,000-square-foot users looking at it.”

Singerman acknowledges the trend is somewhat surprising to him, but isn’t complaining. At least there is some activity and interest in a market that has been suffering because of the financial meltdown. “The last few months of activity on the larger tenant side is encouraging,” he adds. “It could be the perception that things may have turned the corner.”

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