New Warehouse Space in Tempe Arizona
Construction of The Elliot Business Park in Tempe, Arizona may be a signal the market is beginning to respond to the decreasing warehouse space in the greater Phoenix area. As vacancy rates continue to fall, once cautious investors are now taking a second look at the Phoenix commercial real estate market and are putting money where it makes the most sense.
The warehouse being constructed is comprised of two buildings offering 316,000 square feet, making it only one of four available warehouses with over 100,000 square feet in the East Valley. With vacancy rates at only 8% and close proximity to the high-tech and aerospace companies in Mesa, Tempe, Gilbert and Chandler, the speculative warehouse build is well positioned to satisfy a growing market demand.
The demand for warehouse space in Tempe is mainly driven by the suppliers of the Valley’s largest manufacturers and distributors. Being close to I10, Sky Harbor airport and rail transportation, Tempe is an ideal hub for manufacturing and distribution companies. The Phoenix Valley has a large population of skilled and unskilled workers to meet staffing needs.
West Phoenix and the lower Buckeye area supports a majority of the larger warehouse facilities. Companies requiring spaces larger than 150,000 square feet had no choice but to look outside central Phoenix. This newer warehouse space in Tempe would satisfy the need for a centrally located warehouse.
To learn more about this project and the warehouse developer, Transpacific, visit the complete story in the East Valley Tribune.