Selects JLL to lease major new Phoenix development
PHOENIX, Arizona – Irwin G. Pasternack AIA + Associates PC and Pasternack Properties broke ground today on TEN Distribution Center 1, a Class A industrial building representing the first 1.1 million square feet in the planned $300 million, more than 3.6 million-square-foot TEN Distribution Center industrial park, located on 83rd Avenue near the confluence of Interstate 10 and the Loop 101 in Phoenix, Arizona.
Irwin Pasternack serves as the property owner, architect and developer. Managing Directors Anthony Lydon and Marc Hertzberg, and Vice President Riley Gilbert, from the Phoenix office of JLL, have been named the project’s exclusive leasing brokers. Graycor Construction Company serves as the general contractor.
“There really has been no better time – or location – for this project,” said Pasternack. “Phoenix is gaining national attention for its strategic location, workforce and low cost of doing business. The demand that this has generated has put Phoenix on the map with a very broad range of business sectors, and that is having an exponential impact.”
The TEN groundbreaking comes on the heels of a record-breaking 2017, which according to the JLL Q4 Phoenix Industrial Insight report, delivered the largest annual net absorption gains in Phoenix history, at 9.8-million-square-feet. It also marked the fourth consecutive year of annual net industrial space absorption totaling 6.0-million-square-feet or more, with no signs of slowing.
“Our market growth is real, and it is not stopping,” said Lydon. “That already has created a shortfall in shovel-ready industrial building opportunities of 500,000-square-feet and above and makes a project like TEN – with its location, amenities and robust City of Phoenix utilities – an increasingly rare commodity.”
TEN is also Foreign Trade Zone capable, able to reduce real property and equipment taxes by as much as 72 percent. “This is on top of any savings that the project might provide to companies relocating from high-cost markets like California,” said Hertzberg. “All told, it is an extremely attractive formula.”
Slated for completion in summer 2018, TEN Distribution Center 1 will offer ultra-modern, cross-dock industrial employment space with 40’ clear height and high volume trailer maneuverability and storage. It will also provide access to 1.75 million people within a 30-minute drive to the site, and corporate neighbors including Amazon, Cardinal Health and PetSmart.
According to Todd Ostransky, Graycor Construction Company General Manager for the Southwest Division, TEN will employ approximately 400 Graycor and construction subcontractor employees across its development and build-out. At its busiest point, this equates to 135 people per day.
At build-out, TEN Distribution Center will become the largest freeway industrial employment site in metro Phoenix, totaling 215 acres and 3.6 million square feet in six Class A industrial buildings. Future construction at the project will include five industrial buildings ranging in size from 175,000-square-feet to 1.1-million-square-feet, and fifteen retail, restaurant and service sites fronting 83rd Avenue.
Irwin G. Pasternack AIA + Associates PC has been an active architecture and planning group since 1975, with more than 6,700 buildings in approximately 4,200 projects since inception. The TEN groundbreaking is the latest in Pasternack + Associates local activity, proceeded most recently by the 450,000-square-foot Living Spaces industrial/showroom build-to-suit at 67th Avenue and I-10.