Magna Eyes Phoenix Manufacturing Plant
One of North America’s largest automotive suppliers, Magna Steyr, is extending its manufacturing capacity with a 230,000-square-foot facility in Mesa, Ariz., within Power Industrial Park. Magna leased the building earlier this year, Phoenix Business Journal reported, and will build out the space according to its specific manufacturing needs.
The company worked in partnership with the Arizona Commerce Authority, Greater Phoenix Economic Council and city of Mesa. The multimillion-dollar investment will generate hundreds of jobs and further reinforce Arizona’s position as an attractive destination for the automotive industry.
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Power Industrial Park is a 583,955-square-foot campus developed by Newport Commercial Partners, Manncor Realty Advisors and Principal Financial Group.
Colliers Senior Associate Danny Schuster and Senior Vice President Brian Gleason helped Magna with the real estate search. CBRE is listed as being in charge of leasing operations.
Part of a bigger campus
The automotive supplier will occupy Building 4, the campus’ largest. The facility will incorporate innovative technologies and virtual tools, including simulations, to ensure quality and flexibility to expedite the integration of new products.
The developers broke ground on the facility on a speculative basis in August 2022 and completed it last year. Clayco was the general contractor, while DLR Group designed the project.
The building features 36-foot clear heights, office space, 41 dock-high loading doors and six drive-in doors. Additionally, the property has 383 parking spaces and 56- by 60-foot column spacing.
The complex’s other facilities range from 68,689 to 175,035 square feet. The 110,350-square-foot Building 2 is also fully leased.
Power Industrial Park is at 7035 E. Pecos Road, close to the Phoenix-Mesa Gateway Airport. Downtown Phoenix is within 33 miles, while the Phoenix Sky Harbor International Airport is some 29 miles away.
Phoenix remains a hotspot for industrial expansion
Metro Phoenix’s industrial vacancy rate clocked in at 5.2 precent as of June, 90 basis points below the national average, according to the latest Commercial Edge industrial report. The market’s average in-place rent was $9.0 per square foot, up 9.1 percent year-over-year.
In the first half of this year, Amazon was one of the most active companies in the area, leasing 3.4 million square feet in three separate deals. The most recent was a 1.2 million-square-foot commitment at Prologis 303 Business Park in Goodyear, Ariz., for 10 years.
And, in January, BlueScope Properties Group inked a full-building prelease at Blue Cactus Logistics, a 258,000-square-foot project in Surprise, Ariz. TriColor Auto will occupy the facility.
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