EastGroup Properties has leased 17,400-square-feet of industrial space to Fast Fulfillment LLC’s at East University II, 1002 E. University Drive.

Jackie Orcutt, John Grady and Jim Wilson of Cushman & Wakefield represented Jackson, MS-based EastGroup Properties in the transaction. Cooper Fratt of CBRE represented the tenant.

Fast Fulfillment specializes in mail order, retail sales, e-commerce, manufacturing, and supply chain management. The company will take occupancy effective Oct. 1, 2015, making the property 100% leased. It is relocating from 1005 N. 50th St., Suite 120.

“EastGroup’s  building  provided  a  perfect,  central  location  for  Fast  Fulfillment,”  Ms. Orcutt said. “All  parties  worked  efficiently  to  negotiate  and  execute  the  lease  within  a  matter  of  days.”

East University II is part of a three-building project owned and managed by EastGroup Properties.  The 73,080-square-foot business distribution building is centrally located with excellent access to Interstate 17 and Sky Harbor International Airport and features 27-foot clear height ceilings.

The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.

PHOENIX, AZ – While net absorption is down for the same period a year ago, leasing activity is significantly up, according to the second quarter Phoenix industrial report released by Cushman & Wakefield of Arizona, Inc.

“Although net absorption is down year-over-year by almost 400,000 square feet, Phoenix is on track to finish 2015 strong, as leasing activity is up by 2.3 million square feet from this time last year,” says Jackie Orcutt, Market Leader | Investor Services with Cushman & Wakefield. “Cushman & Wakefield is tracking more than four million square feet that has been executed, but has yet to occupy, pushing for a strong third and fourth quarter in the latter part of the year.”

The largest lease signed in 2Q 2015 was Tuesday Morning, 593,600 SF at the Liberty Logistics Center in Southwest Phoenix. Other notable leases included Mattress Firm 170,000 SF, also in Southwest Phoenix; and Home Depot, 111,349 SF, in the North Tempe submarket. Also moving in later in 2015 are Aligned Energy with 545,176 SF and Hunter Douglas with 161,700 SF.

“Much of the current year’s absorption is from mid-sized users ranging between 60,000 and 160,000 square feet,” Orcutt says. “This is especially true in the airport and west Phoenix submarkets.

More than three million square feet of space are under construction in Metro Phoenix. After six months, 3.313 million square feet have already been completed and delivered to the market. The majority of the space delivered so far is in the Southwest Valley, although second quarter completions included 222,470 SF (three buildings at Park Ladera) in Northeast Phoenix, 237,000 SF (Shutterfly) in North Tempe and 208,339 SF (Park Lucero) in Gilbert.

Rental rates have responded to market conditions, ranging from a low of $0.39 per square foot (Southwest Valley) to a high of $1.01 (Scottsdale/Northeast Phoenix). Overall vacancy rate for the second quarter is 12.7 percent. Tempe comes in the lowest at 10.2 percent.

CHANDLER, AZ – Cushman & Wakefield of Arizona, Inc. helped negotiate a long-term lease renewal and expansion at Chandler Tech Center, 7406 W. Detroit Street, for a material handling and automation solutions firm headquartered in Japan.

The renewal and expansion transaction for Daifuku of Osaka, Japan, is for 30,247-square-feet at Chandler Tech Center, which is owned by Buchanan Street Partners of Newport Beach, Calif.

Daifuku develops material handling systems used in manufacturing facilities, warehouse/distribution centers, automotive plants, airports and cleanrooms.

The Southeast Valley industrial submarket of Chandler has been particularly popular with highly specialized tenants. The demand from tenants who want space south of US 60 and east of the Loop 101 has been strong.

“Chandler Technology Center is the perfect location for technology companies such as Daifuku,” said Jackie Orcutt, Market Leader | Investor Services for Cushman & Wakefield. “It has been a pleasure working with them as they continue to grow within the complex.”

Orcutt and John Grady of Cushman & Wakefield represented the landlord. Conner Lee and Marc Pierce of Lee & Associates represented the tenant.