Western Real Estate Business

SEP 2018

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

Issue link: https://westernrealestatebusiness.epubxp.com/i/1027244

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Page 68 of 82

66 • September 2018 • Western Real Estate Business www.REBusinessOnline.com GO MODERN OR GO HOME: INDUSTRIAL SPACE IN THE SOUTHWEST Demand for modern industrial space in today's Southwest continues to soar. By Todd Ostransky T he Southwest continues to soar. The re- gion has come to represent a trifecta of logistics and dis- tribution advantag- es. This is due to the area's competitively priced land parcels and labor wages, expanding transpor- tation routes, and close proximity to both Mexico and the ports of Southern California. Within this environment, the pace of construction — particu- larly when it comes to cutting-edge industrial building models — is im- pressive. A Region Rising Phoenix's West Valley has become a mecca for this type of development over the past five years, transforming communities in the submarket from quiet, low-density residential outskirts to major employment hubs. These hubs are now home to fulfillment and distribution operations for some of the world's largest retailers, from both on- line and brick and mortar. During this time, Graycor has de- livered more than 10 million square feet to the West Valley. This includes 1.3 million square feet within 10 West Logistics Center, a development by Wentworth Property Company and New York Life; 1.1 million square feet at TEN Distribution Center, rep- resenting the first phase of Irwin G. Pasternack AIA + Associates PC's planned 3.6-million-square-foot in- dustrial park; and two industrial shell buildings with tenant build-outs for Prologis. These build-outs included a 230,000-square-foot building at Pro- logis Riverside that is now leased by Home Brand and Performance De- signed Products (PDP), and a second 480,000-square-foot building at Prolo- gis Park Riverside that is now home to Amazon. More demand is anticipated as Phoenix — and the West Valley in par- ticular — rises to become one of the most popular industrial site selection options in the West. That popularity is evident in a vacancy rate that has dipped below 7 percent, its lowest since 2006. It is also reflected in the type of product debuting here. Building for Ecommerce Companies looking for massively scaled but still highly efficient indus- trial projects are turning en masse to Ostransky Amazon occupies space in a 480,000-square-foot building at Prologis Park Riverside in Phoenix. Graycor recently delivered 1.3 million square feet within 10 West Logistics Center in Phoenix, a development by Wentworth Property Company and New York Life.

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