Shock Level. Picture courtesy of Cushman & Wakefield
Panattoni will quickly broaden its industrial-sector presence to the booming metropolitan Phoenix market with a speculative venture. An actual property fund suggested by the industrial actual property firm will develop Shock Level, a premier 274,000-square-foot distribution facility in Shock, Ariz.
Shock Level will occupy an roughly 16-acre web site roughly 20 miles northwest of downtown Phoenix within the West Valley space’s 290-acre Shock Pointe mixed-use enterprise park. Panattoni closed on the acquisition of the totally entitled property in January 2023, buying it from Atlas Capital Companions in an $8.5 million transaction orchestrated by Cushman & Wakefield on behalf of the vendor.
Irvine, Calif.-based Panattoni, which boasts a world footprint, has picked an optimum time to show its consideration to the Phoenix industrial market. “In metro Phoenix in 2022, we completed the yr with optimistic web absorption of just about 22 million sq. ft. It was an enormous yr for Phoenix,” Kirk Kuller, senior director with Cushman & Wakefield, instructed Business Property Government. “And the demand drivers in Phoenix proceed to be actually sturdy.” Kuller labored on the land transaction with Cushman & Wakefield colleagues Will Robust, govt vice chairman; Phil Haenel, govt managing director; Molly Hunt, affiliate; Callahan Conway, senior monetary analyst; and Stephanie Saccente, senior advertising and marketing lead.
READ ALSO: How A lot Will Buyers, Lenders Cut back Exercise?
The imaginative and prescient for Shock Level consists of all of the bells and whistles that industrial property customers have come to count on in a state-of-the-art asset. The rear-load distribution facility will function a transparent peak of 36 ft, 200-foot truck courts, 60-foot velocity bays and ESFRs sprinklers. Moreover, the property may have the potential for rail service by means of BNSF Railway.
Proper location in the best location
The Phoenix industrial market is faring very properly, and as for Shock, town has been shifting increased up on the radar, as evidenced by the submarket’s 1.7 % emptiness charge within the fourth quarter of 2022, in keeping with a report by Cresa. In response to Cushman & Wakefield, Shock’s success might be attributed to the 2 main demand drivers for industrial product in Phoenix, the primary of which entails the Golden State and the second has a bit of one thing to do with a semiconductor big.
“[There] is the California influence, with customers, distributors and producers seeking to relocate out of California and into Phoenix. Many of those customers have landed within the West Valley and we’ve seen continued growth alongside the Loop 303 Hall,” Kuller stated. “After which coming from the Deer Valley submarket, the TSMC influence has created a ripple impact of demand not solely in North Phoenix but additionally shifting south alongside Loop 303. The Shock submarket finally ends up being a center floor for a lot of of those customers.”
Panattoni expects building of Shock Level to get underway in the course of the first quarter of 2023. Within the meantime, the corporate stays energetic in different industrial endeavors. At first of the brand new yr, Panattoni revealed that it’ll break floor on Covington 18, a 243,000-square-foot warehouse within the suburban Seattle metropolis of Covington, Wash., in April. And earlier this month, the corporate introduced plans to develop the 1 million-square-foot Yuma Industrial Park within the border city of Yuma, Ariz., simply 30 miles from the San Luis Port of Entry to Mexico.
