As the commercial real estate market in Metro Phoenix continues to climb slowly and steadily, the industrial market is projected to hit all-time absorption records by the end of 2017 while the office market is expected to surpass 2.0 million square feet for the fourth year in a row, according to our recently published Q3 Insight reports.
According to JLL’s Q2 Phoenix Industrial Insight Report, the hot activity of manufacturing companies is driving up industrial rental rates. In the last year alone, manufacturing rates have surged 18.6 percent, to $0.59 per square foot. This sector has been particularly active in the Southeast Valley, especially in Tempe and Mesa.
With ample land available for development and relatively low construction costs, users in the Phoenix industrial market often decide to build their own facility instead of leasing space in existing properties. However, leasing activity in existing… Read More
Although Tempe is often considered one of the most popular office submarkets in the Valley, it is also a popular destination for small- to medium-sized industrial users who don’t fit into the big box industrial space in the Southwest Valley. Like the tech tenants that have flocked toward the centrally located city, a wave of nutraceutical companies have taken advantage of the Class A and B product that is often unavailable… Read More
The Northwest is Phoenix’s third-smallest industrial submarket behind 51 Corridor and Scottsdale, but it is posting big activity, attracting two of the largest owner-built facilities of the year:
- REI — A 400,000 square foot fulfillment warehouse in Goodyear
- IRIS USA — A 384,373 western regional headquarters in Surprise
Both REI and IRIS praised the cities of Goodyear and Surprise, attributing business-friendly environments and “holistic communities” as reasons for locating in the Northwest. But the… Read More
Distribution centers near the nation’s top seaports are bursting with consumer goods and other cargo—and that’s before the Panama Canal extension opens next spring. Distribution center and warehouse occupancy levels have reached historic highs, while expensive construction and labor costs keep new development sparse in many seaport industrial real estate markets.
JLL’s seventh annual Seaports Outlook Report and index – the first of its kind in the industry – ranks the most prominent ports in North America. According to the report, which analyzes the health of major container seaports and their surrounding real estate, occupancy levels by total square feet have surpassed 2007, which was the high-point of the last real estate boom. … Read More
Denoting a still-growing demand in the West for Class A industrial investments, JLL’s Capital Markets experts today announced the firm has closed the sale of the Zulily building, a 2014-built, 707,010-square-foot Class A warehouse/distribution project located in the Reno suburb of Sparks, Nev.
JLL Managing Directors Mark Detmer and Bo Mills completed the sale on behalf of USAA Real Estate Company. Michael Nevis of NAI Alliance served as the local market expert. CBRE Global Investors purchased the building for $41.75 million, or $59.05 per square foot.
The Zulily building is located at 3200 USA Parkway within the Tahoe Reno Industrial Center (TRIC). The building is currently 100 percent occupied through a long-term, NNN lease to Zulily.… Read More