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.

Developer Sees Demand for Distribution of Mexico-Produced Goods Through Arizona

PHOENIX, Feb. 9, 2023 – Leading U.S. industrial space developer Panattoni Development has land at 36^th Street and South Avenue 4E in Yuma, AZ for development of a 1+ million square foot industrial park.  Panattoni sees an opportunity for US and international companies to utilize Yuma as a distribution point for both the US and Mexico markets.

“As a result of pandemic supply chain issues, escalating shipping expenses and tensions with China, many companies are bringing manufacturing back to North America,” says Rob Martensen, senior executive vice president with Colliers in Arizona.  “This project offers companies that manufacture in Mexicali and other areas south of the U.S. border to transport goods straight to Arizona for distribution throughout the United States. Yuma provides a convenient and cost-effective distribution point for goods coming from Mexico through nearby Calexico.”

Yuma, located near the border of Arizona, California and Mexico, is just 25 minutes from the San Luis Port of Entry to Mexico.  Yuma is a 3.5 hour drive to Tijuana, involving travel limited to Arizona and Mexico roads.  Additionally, Yuma is located within a four-hour drive of the Inland Empire for businesses looking for the available rent relief and labor associated with southwest Arizona.  The city of Yuma offers a unique market of abundant labor, including both Yuma and Mexico residents who live just over the border.  Yuma also offers much lower taxes for companies, relative to other distribution cities.

The initial phase of Panattoni’s Yuma Industrial Park is slated to include four buildings ranging from 234,000-279,000 square feet each.  They will feature two grade level doors, 49 rear load dock high doors and 32’ clear height ceilings. P