JLL Q2 Phoenix Industrial Insight report touts Valley economy as hitting on all cylinders 

PHOENIX, Arizona – Phoenix’s Southwest Valley submarket has placed top in the nation for industrial prospects looking for space to relocate or expand their operations, according to the newly released JLL Q2 Phoenix Industrial Insights report. According to JLL, this includes 83 tenants in the market with a maximum requirement of more than 30 million square feet.

“When you consider the region’s robust in-migration, reasonable governmental regulations and sustained growth in global trade and regional consumption, the Phoenix economic machine appears to be hitting on all cylinders,” said JLL Managing Director Anthony Lydon. “Not even the hot summer months have slowed the tide of inquiries, facility tours and letters of intent. As that interest turns to commitments – and then to absorption – I expect we will see even greater expansion of our industry supply chain, which is the backbone of the Phoenix industrial sector.”

According to JLL, nearly a decade of positive net absorption has pushed metro Phoenix industrial vacancy to a 10 year low of 6.7 percent, only decimals away from the Valley’s historic low point of 6.2 percent vacancy achieved during the third quarter of 2006.

As has long been the case, the Phoenix industrial sector continues to benefit from a large flow of manufacturing prospects, e-commerce, logistics and distribution interests – particularly for Southwest Valley space.

“This quarter was a little unique in that Nestle and Ulta both vacated from the Southwest Valley, creating negative absorption in the submarket,” said Lydon. “But in our current environment, we expect that figure will quickly recover with broad demand from industrial big box, mid-bay and data center prospects.”

There is currently more than 6.3 million square feet of new industrial space under construction in metro Phoenix, with absorption continuing to exceed new space deliveries as it has done for five-and-a-half straight years.

To access JLL research for Phoenix and across the U.S., visit the company’s research page at https://www.us.jll.com/en/trends-and-insights#research.

Read full Q2 Industrial report here: Industrial Insight_Q2 2019_Phoenix

TUCSON, ARIZ. – The Southern Arizona Environmental Management Society (SAEMS) recently received a $2,500 grant from the foundation of engineering consulting firm Terracon, which has Arizona offices in Tucson, Tempe and Avondale.

The Terracon Foundation Board selected SAEMS as its grant recipient. Terracon Senior Associate Derek Koller submitted the nomination. The grant will be used to award a single, $1,500 scholarship to an SAEMS applicant. The remaining funds will be used for student scholarships to both luncheons and the group’s annual RCRA seminar.

SAEMS is an environmental organization that provides educational, networking, development and community improvement opportunities to help learn about environmental concerns and issues related to the growing desert community.

“As both a past SAEMS board member and scholarship winner, I am proud to be an employee-owner at a company that allows us to support and advocate for organizations in our community that we are involved with,” Koller said.

Terracon has been a corporate partner of SAEMS for more than 10 years.

“SAEMS is grateful to have received this funding from the Terracon Foundation,” said outgoing SAEMS President Ouatfa Chuffe-Moscoso. “Terracon has been a long-time supporter through volunteerism, participation on our board and committees and in recent years assisting us with grant opportunities. They allow us to make a real and positive impact in the lives of students seeing an education and career in the environmental health and safety industry.”

Terracon is an employee-owned consulting engineering firm with more than 4,000 employees providing environmental, facilities, geotechnical, and materials services from more than 140 offices with services available in all 50 states.

Terracon currently ranks 24th on the Engineering News-Record list of Top 500 Design Firms and is ranked No. 1 in Asbestos and Lead Abatement Design.

To learn more about Terracon visit terracon.com/offices/tucson/

TUCSON, Arizona – Orange Grove Village Shopping Center has been sold to a California based investor for $2.725 million ($142 PSF) according to public records. After 55 years of ownership, Tucson-based 4-D Properties sold the 19,154-square-foot retail strip center that was built in 1964 and 1972 on 2.74 acres at the northwest cornet of Oracle and Orange Grove Roads in Tucson.

The new owner, S1K, LLC, has plans to do a major renovation of Orange Grove Village. Stickley Design Group of Tucson is working on the renovation drawings. Chapman Management Group has been hired as the property manager and Commercial Retail Advisors will continue in its capacity as the project leasing agent.

Craig Finfrock of Commercial Retail Advisors, LLC represented both the seller and the buyer in this transaction. Commercial Retail Advisors, founded in 2001, specializes in the leasing and sales of shopping centers and retailer tenant representation throughout southern Arizona. For more information, please contact Craig Finfrock of Commercial Retail Advisors at (520) 290-3200 or visit their website at www.cradvisorsllc.com.