Amazon Expands Phoenix Footprint With 1.2 MSF Lease
Amazon is continuing to expand its presence in metro Phoenix. The retail giant has signed a 1.2 million-square-foot lease at Prologis 303 Business Park in Goodyear, Ariz., Phoenix Business Journal reported.
The company has committed to a 10-year tenancy. JLL represented the owner, Prologis.
This lease is the latest in a series of recent commitments Amazon has made in the area. Last month, the company inked a 1.2 million-square-foot lease at the newly-built The Cubes at Glendale in the West Valley region, followed by another 1 million square feet at Paloma Vista Logistics Center in Buckeye, Ariz. All lease agreements were signed for a 10-year period.
New addition to the Loop 303 industrial corridor
Prologis broke ground on the business park in March 2023. The $190 million property encompasses two developments that are slated for completion later this year: Building 1—the warehouse leased by Amazon—and the 404,800-square-foot Building 2, CommercialEdge data shows.
Building 1 features 238 dock high doors, four grade level doors, ESFR sprinklers, R-30 insulation, 991 car parking stalls and 561 trailer parking stalls. The facility has been proposed for LEED certification.
Prologis 303 Business Park took shape on 113 acres in a designated Foreign-Trade Zone, at 4780 N. Cotton Lane. The campus is less than 1 mile from Loop 303 and has access to Interstate 10 and U.S. Route 85. Downtown Phoenix is some 25 miles east. Companies in the surrounding area include UPS, Pepsi and Ferrero USA, among others.
A leading industrial market
A national leader for industrial development, with 42.7 million square feet in the pipeline as of February, Phoenix also had the lowest vacancy rate among Western markets, a recent CommercialEdge report shows. The index clocked in at 3.2 percent that month, 180 basis points below the national average; Portland (4.1 percent), Orange County (4.5 percent) and the Bay Area (4.6 percent) followed.
The same research shows average rents for new leases signed in Phoenix in the last 12 months also surpassed the national average of $7.68 per square foot. The Valley’s leasing deals averaged $11.03 per square foot year-over-year as of February, the metro being one of the three markets outside California where the index outpaced the national figure.
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