A mining division of H-E Parts has leased the remaining 8,400 SF of 3224 N Freeway Industrial Loop. This lease proves how strong the industrial market is and how spec industrial development is now a proven model and makes sense in the Tucson market. We can confidently assume that this success will spur more development which leads to job creation and strong economic development for Tucson.
For years, developers have been bearish with spec development. This new lease and lease rate in Tucson proves that the Southern Arizona industrial market is in need of spec development. The lease was completed before the landlord even built out any office or improvements,. The building was in shell condition at the time of the lease execution. That goes to show there is pent up demand from quality tenants in the Tucson region.
As industrial businesses tour the Tucson market their biggest concern is the lack of inventory and the lack of new product. In a low vacancy real estate market, finding a new building can be a huge win for a growing business and can attract new businesses to the region. More spec construction will lead to increased economic growth in the Tucson area.
The construction was completed by Peter Strunk of MJI Company. Peter can be reached at 520-269-9895 mjicompany.com
Max Fisher of BRD Realty represented the landlord and Rob Glaser of Cushman & Wakefield | PICOR represented the tenant.
As the housing market, mining market, and distribution markets continue to grow, outdoor storage is increasingly becoming a sought after asset class. The demand from materials suppliers for the housing market, fleet storage, heavy machinery, and mining parts and materials is fueling this new asset class. An industrial building with a fenced yard in this market is a real gem.
As we've seen in other markets such as Phoenix, Dallas, Denver, LA, and others, well located industrial land has increased from $5 per foot to $20 per foot and even higher. Why? Last mile is ALL about location and proximity to the consumer. Land is finite and the increased demand from distributors, marijuana users, mining companies, and materials suppliers is squeezing the supply of industrial yards.
In the future we will see fenced yards be developed into last mile distribution hubs. There is only so much real estate next to highways, so as distribution continues to grow, these sites will appreciate greatly.
Pros of Industrial/Outdoor storage property
-Potential for strong appreciation in well located areas near highways and major arterial roadways
-Minimal need for capital investment
-Strong demand from tenants
For more information about Industrial yard contact Max Fisher 520-465-9989 firstname.lastname@example.org
Max Fisher, Industrial Properties Broker