Confluent Development, a Denver-based real estate investment and development firm, and DPC Companies, a Colorado-based commercial real estate owner and developer, are pleased to announce that construction is underway on HUB 317, a class “A” distribution center being built speculatively in the heart of the Sky Harbor International Airport submarket in Phoenix.
The project partners are converting and expanding a former retail warehouse located at 317 South 48th Street into 225,000 square feet of industrial/distribution space designed to accommodate multiple large tenants. Featuring a contemporary design, 32-foot clear ceiling/stacking height, and dock-high loading, the state-of-the-art distribution project will be completed in summer 2018.
“With DPC Companies’ history in the market, we are thrilled to partner with its team as Confluent Development expands its development expertise into Phoenix,” said Celeste Tanner, chief development officer at Confluent Development. “It is rewarding to introduce our capabilities to the Phoenix market while supporting the demand for industrial space.”
Since 2013, the Sky Harbor industrial market has added more than 2.8 million square feet of space, bringing the base to 51.6 million square feet. During this period, the Sky Harbor industrial market has bolstered over 3.394 million square feet of space bringing vacancy down to 9.7 percent. Two recent projects follow the trend of redeveloping functionally obsolete buildings into relevant spaces for the industry’s current climate, including HUB 317. There are currently over 250,000 square feet of lease deals being negotiated at these new developments, which would further enhance the occupancy level for the spec product within this submarket.
“We are pleased to see the market’s reception to this project as it meets the needs of Phoenix’s industrial sector,” said Chris King, president and CEO of DPC Companies. “We are excited with the amount of leasing activity that we have had to date and anticipate increased interest as construction progresses.”
Justin Lutgen, DPC Companies’ vice president overseeing all Arizona operations, is directing the project. With a local Phoenix office, Ware Malcomb is serving as the architect on the project. Ken McQueen and Chris McClurg, principals with Lee & Associates, are serving as the leasing agents.