Ryan Cos. JV Starts Office-to-Industrial Conversion in Phoenix
A joint venture of Ryan Cos. and Alidade Capital has broken ground on Chandler Freeways Business Park, a 190,475-square-foot industrial development in Chandler, Ariz. The duo will convert a 175,654-square-foot existing office building as part of the project. Completion is scheduled for the fourth quarter this year.
Plans call for the conversion of the two-story office building into an 87,600-square-foot, single-story industrial facility. Additionally, the developers will build a second, 102,875-square-foot industrial asset. Butler Design Group provided design services.
Chandler Freeways Business Park will feature clear heights between 28 and 32 feet, speed bays ranging from 40 to 60 feet, as well as a total of 26 dock-high doors and 11 grade-level doors.
READ ALSO: Phoenix Industrial Development Remains Fast-Paced
The development is taking shape at 6955 W. Morelos Place, less than 1 mile from Highway 202 and about 19 miles southeast of downtown Phoenix. The Phoenix Sky Harbor International Airport operates 12 miles away.
Ryan Cos.’ office-to-industrial ventures
In November 2024, Ryan purchased the office property for $16.8 million from Landwin Management Co. Verizon had leased the asset since 2004. The office building didn’t start out as such. It was originally built as an industrial facility and later converted into an office building. Now, due to its conversion-minded design, it’s slated to go back to its initial usage.
This isn’t the first time Ryan and Alidade partnered to turn office into industrial in metro Phoenix. The duo joined forces last June to redevelop the 128,048-square-foot Red Mountain Corporate Center in Phoenix into Innovate48, a 163,000-square-foot industrial facility. Completion is expected next quarter.
Metro Phoenix industrial completions hit a new record
Industrial completions skyrocketed last year, with 42.9 million square feet brought online across metro Phoenix, setting a new record, according to a Cushman & Wakefield report. The supply glut led to seven consecutive quarters of vacancy increases, bringing it up to 12.7 percent in December.
Several projects wrapped up during the last quarter. Rockefeller Group completed a 418,400-square-foot distribution center in Surprise, Ariz., while Thompson Thrift brought online the 400,000-square-foot first phase of the Germann Commerce Center in Phoenix.
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