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Industrial Outlook Phoenix . Q4 2013
A substantial improvement in
the fourth quarter breathes life
back into Phoenix Industrial
2.5 million square feet of total net absorption this quarter
Total industrial vacancy valley-wide is relatively flat at 11.9 percent due to
a very active development pipeline
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 3
Phoenix industrial overview
Economy By most accounts, the Phoenix economy showed us in the fourth quarter of 2013 that continued
growth in nearly all facets is achievable. With the Phoenix unemployment rate falling to 6.0 percent,
well under the Arizona unemployment rate of 7.8 percent, and job growth at a steady 2.3 percent, the
outlook for the Phoenix economy in 2014 looks to stay positive. Looking forward to 2014, there are
already signs that those numbers will continue to improve. Many businesses are moving operations to
the Phoenix area, such as Apple, which purchased the First Solar building to manufacture glass
components for a variety of their products. This specific transaction will be responsible for bringing
2,000 jobs to the Valley.
The Phoenix area has shown consistent growth over the years, and 2014 shows no signs of slowing
down. With more jobs, comes more people and the 2.6 percent overall projected population growth in
2014 is a strong testament to that. Homes are expected to bounce back, with single family permits
forecasted at more than 15,000 units next year. While there is still much to improve upon within the
Phoenix economy, the fourth quarter of 2013 showed us that better times are indeed on the horizon,
and Phoenix will continue to be a place of high demand for employers.
Market conditions Phoenix recorded a very strong end to 2013 with 2.5 million square feet of total net absorption across
all industrial product types. This substantial improvement added to year end values totaling 3.6 million
square feet absorbed over the last 12 months. Unfortunately, 2013 fell short of absorption in 2012
when almost 5.5 million square feet was newly occupied. Concerns about political risks such as the
government shutdown forced many tenants to delay their real estate decisions until clarity from
Washington was guaranteed.
Many corporate occupiers continue to hold off on any strategic decisions until the last minute to
make sure they have an accurate understanding of their space needs. These users need to move to
existing buildings in order to accommodate their timing requirements. With that in mind, Phoenix
will likely benefit significantly in the long term by attracting major corporate occupiers because the
valley has a critical mass of high-quality, institutional grade spec projects that are ready for
occupancy. The last time Phoenix delivered a significant amount of spec space, the end result was
that Amazon made commitments in excess of 4 million square feet because those projects had
already been built.
Tenants are intent on controlling their real estate costs; however, labor and transportation have a
far more significant impact on their financial performance, so the need to do a really cheap real
estate lease transaction is not as important as locating in the right market and the right facility. The
bulk of activity stems from the e-commerce companies and logistics groups, based on a growing
consumer economy and the need for same-day delivery through internet sales.
The development pipeline remains very active in Phoenix with 4.2 million square feet currently
under construction. Five projects were delivered in the fourth quarter, adding 1.4 million square feet
to the existing inventory. Three of these new buildings currently stand vacant awaiting their next
tenants. The majority of recent spec development in the bulk distribution sector is controlled by
institutions and REITS with long-term strategies. That said, there may be some rental rate
compression, however the downward pressure on rents will not be as significant as some may
expect, given investors’ belief that Phoenix has become a premier logistics location as an
alternative to California. Our neighbor to the west continues to have issues with their tax structure
and business environment and most investors believe this will bode well for Phoenix in the long
term.
Total industrial market (owner occupied included) Supply Construction Direct vacancy Total vacancy Demand Pricing
Total stock (s.f.) Under construction (s.f.) Rate Trend Rate Trend Q4 2013 net absorption (s.f.) Average rental rate (NNN)
Warehouse / Distribution 185,870,291 1,786,074 11.7% 12.1% 2,635,133 $0.43
Manufacturing 61,556,070 2,430,757 12.6% 14.1% -123,300 $0.63
Total Industrial Market 248,986,389 4,216,831 11.2% 11.9% 2,453,256 $0.44
Flex / R&D 31,669,140 0 19.2% 20.1% 325,109 $0.91
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 4
Phoenix industrial overview, cont.
Phoenix property clock
Peaking market
Falling market
Rising market
Bottoming market
Warehouse & Distribution
Land
lord
leve
rage
Tenant leverage
Outlook
The industrial landscape in Phoenix is set up for a strong performance in 2014. As fiscal
insecurities and government risks fade into the background, construction and housing will drive the
recovery through the next year. A handful of larger tenants over 200,000 square feet are ready to
commit to space and smaller users will continue to stay active as home building gains momentum.
Steady job gains are expected to continue with Trade, Transportation, and Utilities and Construction
leading the way.
Phoenix is not only a great alternative to California as a logistics market, but the valley boasts a
continuously growing consumer base due to consistent population growth that is again gaining
traction since its pre-recessionary highs. Plenty of sunshine, a high quality of living, and a great
business-friendly environment will differentiate Phoenix as one of the top markets for companies,
large and small, in the nation.
Manufacturing Flex
Phoenix Overall
Trend spotlight… • Leasing activity was relatively slow at only 11.3 million square feet in 2013, but is expected to
increase in 2014 with more fiscal clarity from Washington.
• Total industrial market vacancy, excluding Flex properties, is now 11.9 percent.
• A handful of large speculative construction buildings continue to stand vacant as activity
among larger users is slowly gaining traction.
• Rental rates are expected to remain relatively flat due to an abundance of new industrial
construction coming to market.
• Apple is setting up manufacturing operations in the Phoenix metro and is expected to attract
many more complimentary users.
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 5
Pricing trends
• Rents continue to inch upwards in most submarkets as activity slowly begins to increase.
• The Flex market recorded a negative quarter as asking rents returned to $0.91 per SF, NNN,
across the valley.
• Manufacturing product continues to struggle as rents fell from $0.64 to $0.63, while rents across
Warehouse and Distribution properties remain stable at $0.43.
• Mesa and Tempe were the only two submarkets that recorded incremental decreases in asking
rents.
• Ahwatukee/Chandler posted the largest gain increasing by 2.9 percent to $0.59 per SF, NNN.
Phoenix industrial overview, cont.
YTD net absorption
Demand trends
• Southwest recorded the greatest absorption gain in the fourth quarter with over 1.1 million square
feet of total net absorption.
• Tempe and the 51 Corridor were the only two submarkets that recorded absorption losses this
quarter while all other submarkets recorded positive net absorption gains. This is a testament to
the increased activity amongst smaller and mid-sized users who are growing with the Phoenix
economy.
• Stabilization of the U.S. budget crises and no government shutdowns expected is anticipated to
release tension and allow the active tenants that were unwilling to make a commitment in 2013,
to secure space in 2014.
Average monthly asking rental rate (NNN)
1,101,491
631,014
615,144
335,002
333,767
326,986
207,390
128,704
22,029
(11,242)
(107,316)
-500,000 -250,000 0 250,000 500,000 750,000 1,000,0001,250,000
Southwest
Grand Avenue
Airport
Northwest
Deer Valley
Ahwatukee/Chandler
Scottsdale
Mesa
Gilbert
Tempe
51 Corridor
$0.
77
$0.6
2
$0.5
9
$0.5
9
$0.5
4
$0.5
1
$0.4
8
$0.4
8
$0.4
8
$0.3
6
$0.3
5
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
Scottsdale
Deer V
alley
Mesa
Ahw
atukee/Chandler
Gilbert
51 Corridor
Tem
pe
Northw
est
Airport
Grand A
venue
Southw
est
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 6
Phoenix leased industrial market [excluding owner occupied facilities]
Methodology…
The leased industrial sector excludes owner-occupied
product from the data set and provides a rental equivalent
perspective for industrial buildings that are leased by
tenants. Buildings can move in and out of this data set
based upon being purchased or sold by a particular user.
Recent lease transactions
Tenant name Location Submarket Deal type Size (s.f.)
First Solar 2950 South Litchfield Road Southwest New 418,200
Mega Furniture 3941 West Mohave Street Southwest New 144,000
AZ Nutritional
Supplements 6850 West Morelos Place
Ahwatukee /
Chandler New 126,251
Tenants in the market
Tenant name Submarket concentration Size requirement (s.f.)
Undisclosed retailer Market-wide 1,000,000
Sports retailer Southwest 500,000
Keuhne & Nagel Market-wide 200,000
Total leased industrial market (excluding owner occupied facilities)
Supply total
stock (s.f.)
Direct
vacancy
rate
Overall
vacancy
rate
Demand
Q4 2013 net
absorption (s.f.)
Pricing
Average rental
rate (nnn)
Total leased industrial market 157,598,156 16.4% 17.5% 933,746 $0.44
Warehouse / Distribution 131,265,111 15.9% 16.4% 1,328,684 $0.43
Manufacturing 34,708,137 20.9% 23.6% -175,192 $0.65
Total leased Flex/R&D market 27,074,147 22.3% 23.3% 315,066 $0.91
Sector trends… • Direct and Total Vacancy rates across the leased industrial market have remained flat this
quarter at 16.4 percent and 17.5 percent respectively.
• Lease rates have also remained relatively stable this quarter with warehouse / distribution
product at $0.43 and leased manufacturing at $0.65.
• The fourth quarter saw 933,746 square feet of positive net absorption across all leased
industrial space.
• The majority of positive net absorption was seen across warehouse / distribution product
with 1.3 million square feet while manufacturing product recorded a negative 175,192
square feet of net absorption.
• The Flex/R&D market recorded 315,066 square feet of positive net absorption this quarter
bumping total vacancy down to 23.3 percent.
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 7
Southwest - 1110 North 127th Avenue
RBA 603,863 sf
Buyer Lake Washington Partners
Seller Clarion Partners
Price (p.s.f.) $65.66
Date sold November 2013
Gilbert – 3740 South Signal Butte Road
RBA 1,328,075 sf
Buyer Apple Inc
Seller First Solar Inc
Price (p.s.f.) $81.02
Date sold October 2013
The fourth quarter saw over $330.4 million of sales volume, and remained relatively flat compared to
the third quarter of $317.3 million.
Apple accounts for one of the largest transactions this quarter when it bought a large 1.3 million
square-foot manufacturing facility from First Solar for $81.02 per square foot. Aside from Apple’s
notable purchase, investors are looking to capitalize on value add opportunities primarily in the
Southwest and Southeast valley. Land is also increasingly scarce and parcels with proximity to
freeways and a strong labor pool will charge a premium.
The price per square foot continues its trend upwards and ended the fourth quarter at $82. Average
cap rates have continued to fluctuate around 7 percent for most product, but much lower for higher
quality spaces.
Private parties remain the largest buyers of industrial properties in Phoenix, making up 41 percent
of the buyer pool year-to-date; however, their share is slowly dwindling as REITs continue to seize
on industrial opportunities.
Cap rates for quality institutional product have continued to compress based on the lack of
opportunities and aggressive capital. Cap rates for good product with market rents in place are
expected to be around 6 percent. Rental rates are beginning to stabilize, and rent concessions are
slowly going away – less free rent. Landlords are also not as willing to pay for moving costs
anymore compared to 18 months ago. Tenant improvement allowances, however, remain relatively
static and are still primarily paid for by the landlord. Land costs are up by 20 to 30 percent in most
submarkets over the last 18 months.
Phoenix industrial capital markets overview
Phoenix select sales
Average sales price (p.s.f.) and cap rates
4%
5%
6%
7%
8%
9%
10%
11%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2008 2009 2010 2011 2012 2013
Avg. price (p.s.f.)
Cap rate
Southwest – 7200 West Buckeye Road
RBA 400,000 sf
Buyer UBS Realty Investors
Seller Sealy & Company
Price (p.s.f.) $65.63
Date sold December 2013
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 8
Statistics
Large block availabilities
Construction map
Contacts
Appendix
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 9
Phoenix industrial market statistics
Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities.
Submarket
Total
inventory
(s.f.)
Direct
vacancy
(%)
Total
vacancy
(%)
Direct
availability
(%)
Total
availability
(%)
Q4 direct net
absorption
(s.f.)
YTD 2013 direct
net absorption
(s.f.)
Q4 total net
absorption
(s.f.)
YTD 2013 total
net absorption
(s.f.)
Average direct
asking rent
(monthly p.s.f.)
Average total
asking rent
(monthly p.s.f.)
Under
construction
(s.f.)
YTD
completions
(s.f.)
Airport
Warehouse / Distribution 29,625,387 10.4% 10.6% 11.9% 12.4% 236,702 639,060 252,942 660,532 $0.48 $0.48 0 30,000
Manufacturing 9,321,807 12.5% 14.6% 18.2% 18.4% -44,438 -79,848 -44,438 -79,848 $0.47 $0.44 0 0
Total industrial 40,312,464 10.6% 11.4% 12.8% 13.5% 244,403 593,672 260,643 615,144 $0.48 $0.46 0 30,000
Flex / R&D 4,750,273 16.6% 16.8% 17.8% 21.5% -30,486 -60,014 -30,486 -60,014 $0.84 $0.90 0 0
Grand Avenue
Warehouse / Distribution 20,523,054 7.3% 7.4% 9.2% 9.5% 30,487 368,876 30,487 368,876 $0.35 $0.35 0 0
Manufacturing 5,957,450 7.3% 7.6% 11.4% 11.7% 127,352 166,806 127,352 166,806 $0.44 $0.46 0 0
Total industrial 26,999,453 6.6% 6.7% 8.9% 9.1% 187,348 631,014 187,348 631,014 $0.36 $0.36 0 0
Flex / R&D 1,989,931 17.0% 17.8% 18.0% 18.9% -12,293 -8,448 -4,843 -5,998 $0.63 $0.65 0 0
51 Corridor
Warehouse / Distribution 1,524,263 11.8% 11.8% 15.2% 15.2% -106,099 -90,712 -106,099 -90,712 $0.51 $0.51 0 0
Manufacturing 691,251 4.6% 4.6% 4.6% 4.6% 0 -6,220 0 -6,220 $0.50 $0.50 0 0
Total industrial 2,403,219 8.3% 8.3% 10.5% 10.5% -126,168 -107,316 -126,168 -107,316 $0.51 $0.51 0 0
Flex / R&D 837,903 11.6% 11.6% 11.5% 11.5% -3,655 -7,786 -3,655 -7,786 $0.72 $0.72 0 0
Deer Valley
Warehouse / Distribution 7,619,937 7.4% 7.8% 9.1% 9.5% 70,823 350,364 39,323 325,382 $0.59 $0.59 289,025 0
Manufacturing 4,535,954 14.3% 14.3% 16.1% 16.3% 95,952 87,737 95,952 87,737 $1.12 $1.12 0 0
Total industrial 11,165,708 5.8% 6.1% 7.6% 7.9% 100,356 358,749 68,856 333,767 $0.62 $0.62 289,025 0
Flex / R&D 3,565,479 23.4% 23.4% 26.6% 26.6% 142,799 250,764 142,799 250,764 $1.08 $1.08 0 0
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 10
Phoenix industrial market statistics, cont.
Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities.
Submarket
Total
inventory
(s.f.)
Direct
vacancy
(%)
Total
vacancy
(%)
Direct
availability
(%)
Total
availability
(%)
Q4 direct net
absorption
(s.f.)
YTD 2013 direct
net absorption
(s.f.)
Q4 total net
absorption
(s.f.)
YTD 2013 total
net absorption
(s.f.)
Average direct
asking rent
(monthly p.s.f.)
Average total
asking rent
(monthly p.s.f.)
Under
construction
(s.f.)
YTD
completions
(s.f.)
Scottsdale
Warehouse / Distribution 5,367,596 11.0% 11.1% 12.8% 14.2% 62,492 29,917 57,992 145,917 $0.78 $0.78 0 0
Manufacturing 3,190,784 9.7% 9.8% 23.1% 23.3% 11,263 18,850 8,169 14,456 $0.83 $0.82 0 0
Total industrial 8,156,303 7.8% 7.9% 14.5% 15.4% 35,845 91,390 31,345 207,390 $0.77 $0.77 0 0
Flex / R&D 4,101,119 18.1% 18.8% 23.0% 23.7% 77,914 93,158 74,820 89,014 $0.86 $0.85 0 0
Tempe
Warehouse / Distribution 22,411,810 12.3% 12.6% 15.1% 15.7% 341,218 302,109 328,218 296,203 $0.48 $0.49 0 316,000
Manufacturing 8,607,027 8.2% 8.3% 11.3% 11.5% 52,886 -251,149 52,886 -139,800 $0.85 $0.85 0 0
Total industrial 30,297,328 11.0% 11.2% 13.4% 13.8% 389,159 -5,336 376,159 -11,242 $0.48 $0.49 0 316,000
Flex / R&D 7,391,464 12.9% 14.5% 20.8% 22.9% 18,086 -91,263 18,086 44,987 $0.98 $0.98 0 0
Mesa
Warehouse / Distribution 6,145,971 12.4% 12.9% 15.3% 15.8% 25,387 76,195 25,387 82,964 $0.59 $0.59 0 0
Manufacturing 2,818,839 3.5% 3.5% 5.8% 5.8% 6,483 48,450 6,483 48,450 $0.63 $0.63 0 0
Total industrial 9,367,927 8.8% 9.1% 11.7% 12.1% 24,377 121,935 24,377 128,704 $0.59 $0.59 0 0
Flex / R&D 623,314 22.2% 22.2% 21.1% 21.1% 27,938 33,525 27,938 33,525 $0.68 $0.68 0 0
Gilbert
Warehouse / Distribution 10,002,714 12.5% 12.9% 15.5% 15.9% 111,713 381,798 90,731 361,741 $0.55 $0.55 0 0
Manufacturing 5,602,086 35.7% 37.2% 12.8% 14.3% -510,873 -416,673 -510,873 -416,673 $0.64 $0.63 0 0
Total industrial 15,360,793 19.9% 20.7% 13.0% 13.8% -372,442 42,086 -393,424 22,029 $0.54 $0.54 0 0
Flex / R&D 3,014,182 33.6% 33.6% 32.2% 32.3% 2,690 -314,442 2,690 -314,442 $0.90 $0.90 0 0
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 11
Phoenix industrial market statistics, cont.
Vacancy: Physically vacant space. Total Vacancy includes both direct and sublease space. Availability: Space being marketed for lease by owner or sublessor, regardless of occupancy. Total Availability includes both direct and sublease space. Net Absorption: The net change in occupancy over a measured period of time. Average Asking Rent: Direct monthly values presented on a NNN basis, then weighted by the amount of direct available space in a building. Statistics reflect the total industrial market, including owner occupied facilities.
Submarket
Total
inventory
(s.f.)
Direct
vacancy
(%)
Total
vacancy
(%)
Direct
availability
(%)
Total
availability
(%)
Q4 direct net
absorption
(s.f.)
YTD 2013 direct
net absorption
(s.f.)
Q4 total net
absorption
(s.f.)
YTD 2013 total
net absorption
(s.f.)
Average direct
asking rent
(monthly p.s.f.)
Average total
asking rent
(monthly p.s.f.)
Under
construction
(s.f.)
YTD
completions
(s.f.)
Ahwatukee/Chandler
Warehouse / Distribution 6,100,703 9.9% 10.1% 7.3% 7.9% 83,891 25,265 83,891 13,508 $0.60 $0.60 0 126,251
Manufacturing 8,456,204 6.1% 8.1% 7.9% 9.9% 11,769 117,720 11,769 117,720 $0.71 $0.71 2,430,757 130,000
Total industrial 14,190,488 6.4% 7.7% 6.2% 7.6% 59,324 338,743 59,324 326,986 $0.59 $0.58 2,430,757 256,251
Flex / R&D 3,276,690 17.7% 20.8% 20.2% 24.0% 105,340 342,832 105,340 342,832 $0.95 $0.88 0 0
Southwest
Warehouse / Distribution 70,760,271 13.3% 14.0% 15.5% 16.5% 1,827,341 881,833 1,827,341 851,324 $0.38 $0.38 1,497,049 3,917,879
Manufacturing 10,421,241 15.2% 19.8% 16.2% 21.5% 147,480 267,534 124,980 239,201 $0.33 $0.31 0 0
Total industrial 83,196,644 13.3% 14.5% 15.3% 16.8% 1,957,332 1,135,987 1,934,832 1,082,978 $0.35 $0.34 1,497,049 3,917,879
Flex / R&D 1,311,193 29.4% 30.3% 27.2% 28.1% 0 -13,656 0 -19,489 $0.73 $0.75 0 0
Northwest
Warehouse / Distribution 5,788,585 18.0% 18.0% 18.9% 18.9% 4,920 197,482 4,920 197,482 $0.47 $0.47 0 418,651
Manufacturing 1,953,427 13.5% 13.5% 14.9% 14.9% 4,420 187,375 4,420 187,375 $0.56 $0.56 0 164,000
Total industrial 7,536,062 15.8% 15.8% 17.4% 17.4% 29,964 358,502 29,964 358,502 $0.48 $0.48 0 582,651
Flex / R&D 807,592 27.5% 27.5% 23.2% 23.2% -7,580 14,942 -7,580 14,942 $0.65 $0.65 0 0
Total market
Warehouse / Distribution 185,870,291 11.7% 12.1% 13.7% 14.3% 2,688,875 3,162,187 2,635,133 3,213,217 $0.43 $0.44 1,786,074 4,808,781
Manufacturing 61,556,070 12.6% 14.2% 13.6% 15.0% -97,706 140,582 -123,300 219,204 $0.63 $0.59 2,430,757 294,000
Total industrial 248,986,389 11.2% 11.9% 12.8% 13.7% 2,529,498 3,559,426 2,453,256 3,587,956 $0.44 $0.43 4,216,831 5,102,781
Flex / R&D 31,669,140 19.2% 20.1% 22.2% 23.9% 320,753 239,612 325,109 368,335 $0.91 $0.91 0 0
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 12
Phoenix industrial buildings with large block availabilities
Contiguous blocks greater than 250,000 square feet; (M): Manufacturing; (D): Distribution; (F): Flex
Northwest
1 Block
545,176 s.f.
2500 W Union Hills Dr (M/F) – 545,176 s.f
Manufacturing/Flex
Southwest
14 Blocks
6,252,136 s.f.
Buckeye Business Center (D) – 697,049 s.f.
Fowler Distribution Center (D) – 682,291 s.f.
Liberty Logistics Center I (D) – 593,600 s.f.
Home Depot Distribution (D) – 552,330 s.f.
ProLogis Park Riverside (D) – 486,241 s.f.
Cotton Lane Commerce Park (M) – 458,839 s.f.
ParkSkyway Business Park (D) – 418,651 s.f.
43rd Avenue Logistics Center (D) – 394,775 s.f.
Riverside Industrial Center (D) – 376,760 s.f.
Coldwater Depot Logistics Center (D) – 326,214 s.f.
7400 W Buckeye Rd (D) – 325,800 s.f.
Valley West Distribution Center II (D) – 323,346 s.f.
4550 West Watkins Street (D) – 313,600 s.f.
Palo Verde Distribution Center (D) – 302,640 s.f.
Distribution Distribution Distribution Distribution Distribution Distribution Distribution Distribution
Manufacturing Distribution Distribution Distribution Distribution Distribution
.
Airport
1 Block
285,198 s.f.
Honeywell Airlane Campus (M) – 285,198 s.f.
Manufacturing
Southeast Valley
1 Block
352,415 s.f.
5125 E Madison (M) – 352,415 s.f.
Manufacturing
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 13
Construction completed – Fourth Quarter 2013
ParkSkyway – 12000 N 132nd Ave
418,651 s.f.
43rd Ave Logistics – 1635 S 43rd Ave
394,775 s.f.
7400 W Buckeye Rd
325,800 s.f.
Construction in progress (100,000 s.f.+)
FAB 42 (Intel Corporation) – 4500 S Dobson Road
2,145,757 s.f. – est. delivery Q1 2014
WinCo Warehouse – S 75th & Durango
800,000 s.f. – est. delivery Q2 2014
Buckeye Business Center – 8585 W Buckeye Road
697,049 s.f. – est. delivery Q2 2014
Intel Chandler – 5400 W Chandler Blvd
285,000 s.f. – est. delivery Q3 2014
Turner Spectrum Ridge – multiple addresses
120,269 s.f. – est. delivery Q1, Q2 2014
MACK Pinnacle – 425 E Pinnacle Peak Rd
90,575 s.f. – est. delivery Q2 2014
MACK Pinnacle – 525 E Pinnacle Peak Rd
78,281 s.f. – est. delivery Q2 2014
1
Phoenix industrial construction map
7
1
1
6
6
7
2
1
4
2
4
5
3
3
Southwest Products – 11690 N 132nd St
164,000 s.f.
6850 W Morelos Pl
126,251 s.f.
4
2
3
5
5
2 3
4
5
Jones Lang LaSalle • Phoenix Industrial Outlook • Q4 2013 14
Phoenix contacts
Brokerage Anthony J. Lydon, SIOR, CSCMP
Managing Director
+1 602 282 6268
Bill Honsaker
Managing Director
+1 602 282 6267
Marc D. Hertzberg, SIOR
Managing Director
+1 602 282 6269
Steve Larsen
Vice President
+1 602 282 6296
Riley Gilbert
Associate
+1 602 282 6271
Project & Development Services Chris Carrell
Senior Vice President
+1 602 282 6250
Derek Ruterman
Vice President
+1 602 282 6253
Research Eli Gilbert
Research Manager
+1 858 410 1248
Matt Kolano
Research Analyst
+1 602 282 6264
Brokerage Mark Detmer
Managing Director
+1 602 282 6289
Bo Mills
Managing Director
+1 213 239 6303
Pat Harlan
Executive Vice President
+1 602 282 6298
Steve Sayre
Executive Vice President
+1 602 282 6299
Kyle Westfall
Associate
+1 602 282 6297
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About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing
in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real
estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle
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