JLL Tapped to Lease Class A Phoenix Industrial Site
- Oct 27, 2016
By Keith Loria
Phoenix—Merit Partners Inc. has named the Phoenix office of JLL as the exclusive leasing broker for Riverside 43, a 250,043-square-foot, fully speculative Class A industrial project that recently broke ground in Phoenix’s West Valley submarket.
“The appeal of this building comes from its collective strengths, ranging from a modern, state-of-the-art function and direct interstate access to the financial benefits of a major tax district,” Marc Hertzberg, JLL managing director, told Commercial Property Executive. “It is also extremely flexible, with the ability to accommodate both mid-size and larger users. Together, it makes for a powerful combination.”
Located at 2200 S. 43rd Ave., Riverside 43 will total 250,043 square feet of modern industrial space with Class A amenities, including 310-foot-deep cross dock configuration and 71 dock-high loading doors.
“This building is modern to its core, with 36-foot clear height ceilings, R-30 insulation, on-site trailer parking and a cross-dock configuration that gives users the critical operational efficiencies that every progressive company is looking for,” Hertzberg said.
When completed, the project can accommodate up to four tenants with four separately accessed secure yards.
Riverside 43 is located approximately 10 minutes from downtown Phoenix and Phoenix Sky Harbor International Airport. It is also less than 3 miles from I-10, offering direct access to West Coast ports and placing numerous large urban areas within a one- to two-day delivery zone.
“The Riverside Tax District alone can save companies as much as 20 percent on their property tax bill,” Hertzberg said. “This is in addition to an exceptional site location that provides direct access to both I-10 and I-17.”
According to JLL’s Q3 Phoenix Industrial Report, speculative industrial construction dominates the remainder of the metro market pipeline. This is a contrast to the past 12 to 24 months, when build-to-suit activity represented a large portion of construction and has greatly contributed to the 4.25 million square feet of new space delivered to the Valley year-to-date. With average industrial vacancy rates hovering at around 9.6 percent, builders are turning their attention to speculative opportunities of all sizes.
“We’ve seen 6 million square feet of gross activity in the Southwest Valley, year-to-date. A good portion of that includes existing user expansions and out-of-state relocations,” Hertzberg said. “This level of demand has placed a premium on existing space and created more demand in the pipeline, which equates to a very smart time to build.”
The project is slated for completion in spring 2017.