Phoenix Named a Top Market for Industrial Leases in 2022

Phoenix’s top four industrial leases totaled 4.6 million sq. ft. – 2022 Sets Record for 1 Million-Sq.-Ft. Industrial Leases

PHOENIX – February 10, 2023 – Demand for industrial & logistics warehousing space is driving an increase in megawarehouses, according to a new CBRE report. Phoenix had four of the largest 100 industrial lease transactions in 2022.

Nationally, there were an unprecedented 63 signings for 1 million sq. ft. or more, up from 57 in 2021. This was a key finding in CBRE’s analysis of the 100 largest industrial & logistics leases completed last year. 

In 2022, Phoenix had four of the top 100 leases for a total of 4.6 million sq. ft. of industrial space, with two of the leases being traditional retailer/wholesalers. E-commerce had the largest square footage leased in the Valley at 1.2 million sq. ft., and third-party logistics (3PL) secured 1.2 million sq. ft. in Glendale.

“With four leases over 1 million sq. ft. in 2022, Phoenix is evolving into a retailer/wholesaler and distribution-focused market,” said Cooper Fratt, executive vice president at CBRE. “When selecting regional distribution center locations, Phoenix continues to attract occupiers with a robust and affordable labor market and fewer business regulations than other locations across the region.”

Representing over half of the top 100 leases, traditional retailers/wholesalers expanded their footprints to accommodate e-commerce sales growth and to hold more inventory to guard against supply chain disruptions. Third-party logistics (3PL) operators took second place, signing 18 of the top leases, up from 10 in 2021. E-commerce companies followed closely behind with 14 of the top 100, down from 21 in 2021.

Overall, the average size of the 100 top leases was 1.07 million sq. ft., compared to 2021’s previous record of 1.05 million sq. ft. Top markets for these leases included traditional mainstays like the Inland Empire, Chicago and Atlanta, as well as growing markets such as Dallas-Fort Worth, Phoenix and Columbus.


To read the full report, please click here.




CBRE Announces $2.06 Million Sale of STNL BrakeMAX in Marana (Tucson), Ariz.

BrakeMAX, 6055 W. Jenna Nicole Ln., Marana

Phoenix, Arizona CBRE announced the sale of a single tenant net investment sale of a BrakeMAX in Marana (Tucson), Ariz. sold to a 1031 exchange buyer, 6055 Jenna Nicole, LLC, a private Tucson-based investor for the asking price of $2.06 million. ($377 PSF) in one of the first sales being reported in 2021.

CBRE’s Nancy McClure in Tucson, along with Philip D. Voorhees and Jimmy Slusher in Newport Beach, Calif. represented the local private seller. The buyer was represented by Danny Gardiner and Chad Tiedeman, Phoenix Commercial Advisors, Phoenix, AZ.

The property, located at 6055 W. Jenna Nicole Lane, consisting of a single use automotive service building of 5,464-square-feet that was built in 2003 for BrakeMAX.

BrakeMAX is a regional operation owned by a New York Private Equity group, Greenbriar Equity with 16 locations across greater Tucson.

“This property attracted a number of offers from highly-qualified buyers,” said McClure. “This commercial asset type is extremely attractive to high-net-worth individuals, family offices and other investors—especially those looking for necessity-oriented net lease properties like this one.  It is internet-proof and continued to operate during the pandemic.”

For more information, McClure should be reached at 520.323.5117.

To learn more, see RED Comp #8407.




Midtown Retail Center, Midstar Plaza in Tucson sells for $5.15 Million

TUCSON, ARIZONA — CBRE has announced Midstar Plaza in Tucson, Ariz. sold to LBM Investments, a private San Diego-based investor for $5.15 million ($102 PSF).

CBRE’s Philip D. Voorhees, Jimmy Slusher and Sean Heitzler in Newport Beach, Calif. along with Nancy McClure in Tucson represented the local private sellers. The La Jolla, Calif.-based exchange buyer was represented by Maha Odeh-Arnold of Zeal Property Group in San Diego.

The property, located at 4500-4594 E. Broadway Boulevard, is a mixed-use center consisting of 50,005-square-feet of retail and 2nd floor office space. The seller had purchased the project in the early 2000’s and redeveloped it with new interiors, exterior façade and a new high-profile pad on the corner.

The transaction included the assumption of an existing loan from Ohio National Life Insurance Company for approximately $2.23 million, producing a 43.6% loan-to-value at a 4.75% interest rate, fully amortizing and due in January 2035. The assumption was facilitated by CBRE Loan Services, Inc. out of Houston, the correspondent servicing the Life Company loan since inception.

“The assumption process was smoother than typical, particularly during COVID, completed in less than 45-days from application,” said Slusher. “This was thanks in part to an experienced purchaser, organized seller and CBRE’s loan servicing team working in conjunction with all parties.”

Midstar Plaza’s 20 retail tenants include a collection of local restaurants, including Opa’s Best, Polish Kitchen, CI Chu’s Mongolian Barbeque, a coffee shop, children’s boutique, hair and nail salons, an Irish dance studio, among others. The 17 co-work style office tenants include Lendmark Financial Services, Shumaker Wengren LCC and U.S. Government military recruiting offices.

“Over time, the ownership successfully curated a tenant mix of national, regional and local businesses, enabling the center to enjoy stabilized occupancy even during COVID,” said McClure, the leasing agent for the property. “Midstar’s location on Tucson’s prime retail and corporate office corridor, Broadway Boulevard, exposes the center to high traffic counts and a continual customer flow looking for unique restaurant offerings, merchandise and services.”  McClure added, “The property has also proudly served as a midtown location for the U.S. military recruiting offices for over a decade.”

To learn more, see RED Comp #8378.