The Phoenix office of JLL has been awarded the leasing assignment for Riverside 43, a 250,043-square-foot, fully speculative Class A industrial project that broke ground this week by Scottsdale-based Merit Partners, Inc. The project is one of the last parcels in the Riverside Tax District in Phoenix’s West Valley submarket.
Located at 2200 S. 43rd Ave. in Phoenix, Riverside 43 at build out will total 250,043 square feet of modern industrial space with Class A amenities including 36-foot clear height ceilings, 310-foot-deep cross dock configuration (71 dock-high loading doors and four roll up, grade level doors and ramps) and R-30 roof insulation.
The project can accommodate up to four tenants with four separately-accessed secure yards.
“Demand for Phoenix industrial space is back to the market highs we experienced in ‘07 and ‘08. It’s a level that more than justifies new, Class A product, and will welcome the delivery of Riverside 43 with open arms,” said Hertzberg. “Tenants who locate here will have the best of today’s modern industrial construction as well as a financial advantage, due to the project’s location in one of Phoenix’s most cost-effective tax districts.”
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.
“This site provides a great opportunity to develop for a segment of the market that has been underserved with new product for a very long time, said Merit Partners Principal Kevin Czerwinski. “Riverside 43 will have all the modern amenities that new construction has to offer.”
Riverside 43 is located approximately 10 minutes from downtown Phoenix and Phoenix Sky Harbor International Airport. It is also less than three 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.
“Today’s manufacturing, warehouse and distribution functions are all about efficiency, and this Class A space will provide that advantage in spades,” added Lydon. “The West Valley has been patient, but now is its time for new spec space.”
The project is slated for completion in Spring 2017. Sun State Builders is the general contractor. “We are proud to partner with Merit Partners and JLL to design and construct a first-class office/warehouse facility,” said Erik Powell, Sales and Development Manager for Sun State Builders.