Globe St.
By Suzanne Heyn
CHANDLER, AZ- A group of nine leases totaling nearly 316,000 square feet of Chandler industrial space have been reported recently. The activity, coupled with strong job growth from the first six months of 2013, has experts feeling good.
“Activity over 50,000 square feet has increased considerably in the past year, especially in the southeast Valley markets,” Jackie Orcutt, director with Cushman and Wakefield, tells Globe St. “Chandler alone has announced more than 4,000 jobs this year.”
Hiring sprees from companies in Chandler such as Nationstar Mortgage, which brought on 1,200 employees during the first half of 2013, and GM, which hired 1,000 employees, has spurred demand for space. Both companies leased 170,000 square feet during the first six months of 2013.
Phoenix’s status as an inland trade hub with a vibrant industrial market and moderate business costs make experts bullish on the area’s growth in coming years. Net absorption of industrial space is expected to outpace new supply over the next five years, Cushman and Wakefield predicts.
The southeast Valley’s industrial market ranks among the Valley’s healthier, according to Voit research, with a Q3 vacancy rate of 11%, asking rents of 54 cents per square foot-both better than average.
To discuss real estate related topis, please contact Jordan Rose as jrose@roselawgroup.com
