IndiCap, Invesco Wrap 1 MSF Project in Greater Phoenix
IndiCap and Invesco Real Estate have completed the first phase of Virgin Industrial Park, three buildings that total about 1 million square feet in Glendale, Ariz. Plans call for two more buildings at a later date, bringing the industrial park to 1.5 million square feet.
The buildings feature 32- to 36-foot clear heights, dock-high and grade-level doors, up to 70-foot speed bays, and fully secured concrete truck courts. The property also offers 3,000 amps of power and parking for more than 2,200 autos and 167 trailers. Work started on the buildings in 2023.
The development’s Building A is a 564,320-square-foot cross-dock structure, while Building B is a 212,160-square-foot rear-load structure, and Building C is a 243,360-square-foot rear-load structure. Tenants have divisibility options down to 75,000 square feet.
The project is at 15748 W. Hatcher Road in Glendale, immediately east of Loop 303 and north of Northern Parkway, at Olive Avenue and Reems Road. IndiCap Vice President of Regional Development Todd Ostransky calls the area one of the fastest-growing industrial corridors in the region, with demand for large and mid-sized space.
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“Today’s industrial spaces need to be adaptable to meet a range of client needs,” IndiCap’s Ostransky told Commercial Property Executive.
“Industrial users are looking for amenities such as outdoor break areas, sports courts, nature trails for exercise, nearby restaurants and retail stores, on-site food options like food trucks and recreational areas like ping pong tables,” Ostransky said. “These features are important for attracting and retaining workers.”
Graycor Construction Co. was the general contractor for Virgin Industrial Park, with Deutsch Architecture as the project architect. Anthony Lydon, Marc Hertzberg, Riley Gilbert and Kelly Royle with the Phoenix office of JLL are the development’s leasing brokers.
Phoenix industrial still strong
Absorption in the Phoenix industrial market totaled 8.6 million square feet during the first half of 2024, indicating strong demand, according to JLL data. However, the market also saw a 1.7 million-square-foot increase in sublease vacancy, so total net absorption for the period was 7 million square feet.
Amazon’s leasing of three Greater Phoenix buildings during the second quarter of 2024 was indicative of the trend. The retail giant took 3.5 million square feet during the quarter, but it also placed about 570,000 square feet of space on the sublease market.
Spec completions persisted at an elevated level for the fourth consecutive quarter in the second quarter, adding more than 8.2 million square feet of new supply to the market, with a preleased rate of 36 percent, JLL reported.
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