 Recent mining and mining explorations around Wilcox have increased massively. What are these mining companies looking for? Copper and lithium. Copper and lithium demand is expected to increase substantially over the next 10 years as the EV market grows quickly. A 4 billion pound plus copper deposit has been discovered near Wilcox. The deposit is a rare formation that will NOT be mined through the typical open pit approach. The in-situ approach will be used which will be almost entirely underground and without any mining shafts. The state operating permit was issued in 2017 and the infrastrucure has been in the works for the past few years. We can expect cathode production to start this year or next year. The initial capex is much lower than expected due to the property being purchased out of recievorship for $8,000,000. The total capex is expected to be around $50,000,000. The mine is expceted to be in production for 24 years and have a 40% IRR. Click the link below to watch a video on in-situ copper mining Excelsior Mining Hydrology Video 2013 - YouTube Exceslior Mining is publicly traded and the photos are from the Excelsior website  A recent land and mineral rights assemblage has been acquired near the Wilcox Playa. Stria holds 100 per cent ownership of the Willcox Lithium project, located in Cochise County, Arizona. Acquired through the purchase of Pueblo Lithium LLC from AGR-O Phosphate Inc. in 2014, the property is comprised of 61 lode mining claims. Click below to read more about Stria and the Wilcox lithium project.
Willcox-Lithium/Arizona – Stria Lithium As automotive manufacturers move into Pinal County, Southern Arizona is positioned perfectly with large and dense copper and lithium deposits to serve the vehicle manufacturing companies such as Lucid, Nikola, and ElectraMeccanica in Pinal County. Pinal and Maricopa are expecting to attract more EV manufacturers as there is plenty of land and power and the logistics infrastructure is primed for large scale manufacturing with rail, interstates and quick access to Mexico.
1 Comment
Torch Properties, a local commercial real estate investment firm, has hired Eileen Lewis, a veteran Tucson commercial property manager, in the role of Director of Property Management. Eileen will oversee and manage Torch Properties' growing portfolio of real estate investment properties in Tucson Eileen Lewis is a long-time Tucsonan who began her career in commercial property management in 1991. Eileen has extensive experience and progressive growth in directing all aspects of property management operations. Her solid expertise in providing hands-on leadership to facilitate business growth, strategic market analysis and financial administration initiatives has made her a valued partner for her clients and tenants. Eileen’s maintains strong industry involvement with Building Owners and Managers Association (BOMA) and Commercial Real Estate Women (CREW). Her experience managing office, industrial and retail assets, along with business owner associations, has shaped her well-rounded property management experience. Torch Properties owns and manages more than 500,000-square-feet of Commercial Real Estate in Southern Arizona. Torch and BRD focus on purchasing value-add commercial property, multi-tenant business parks and industrial property in Southern Arizona. BRD Realty represents the sales and leasing division of Torch Properties where Brandon Rodgers, CCIM, is owner and director and Max Fisher is the Director of Sales and Leasing.   On average, an EV requires 5-6x more copper than an internal combustion vehicle. Every year, 95,000,000 new vehicles are produced and in 2020, 3,900,000 million EVs were sold with a 39% year over year increase. Today, Tesla has the largest market cap of any vehicle manufacturer, signaling a strong shift from combustion to EV.
As the EV market and electrification of India and China grows at a quick pace, we can expect demand for copper to increase quickly. Unlike lumber, mining a new copper deposit takes decades from identifying a deposit to gaining environmental and political approval to building the mining infrastructure. In 2020, most copper mines were shut due to COVID, creating a decrease in supply. This combination of steady but tough to increase supply and mine shut downs is brewing a supply issue that should hit Q3-Q4, meanwhile the demand is increasing at the fastest rate seen in decades. Copper prices have already risen from $2.60 per pound to $4.50 per pound year over year and we haven't experience supply turbulence yet. Large cap stocks such Freeport MacMoran have seen a 3x valuation increase as copper prices have risen within the past year, while other Arizona small cap stocks such as Hudbay and Excelsior have seen more moderate increases. Hudbay has recently identified a new copper rich deposit north of the Santa Ritas and Excelsior is drilling towards a copper rich deposit in Cochise county. In Q1 the Resolution copper mine near Globe Arizona was approved and then put on hold the following day, held up in the courts. Because Arizona has many copper rich deposits and Chile is contemplating adding a 40% copper mining tax, Arizona may see new mines opening up and/or old copper mines re-opening. We have seen many mining exploration firms active in the industrial market and increasing their core sample storage facilities. This most likely means that copper mining companies are bullish on the future of copper prices and see lots of demand in the future. Those who got rich in the California gold rush got rich selling picks and shovels. Copper is the pick and shovel of the EV revolution.  "We can expect more inflation from federal cash injections, panic buying, migration and increased demand. We do not see inflation slowing by the end of the year." "Rumblings of new land acquisitions in Gila, Pinal, Pima, and Cochise County most likely point to mining exploration and potential new mines" "The future of consumer based real estate is last mile. In New York City, property near subways is worth more. Is the future of real estate values based on proximity to distribution centers???"    The small-medium industrial bay leasing market has had a strong and steady Q1, mostly impacted by the housing market, distribution market, and mining industry. As the housing market continues to stay hot, contractors continue to stay busy and expand, fueling the small-medium bay demand.
The Northwest market continues to be the most expensive market as most service/trades businesses want to be close to the expanding markets (Marana, Oro Valley) and I-10. We can expect lease rates to climb until the vacancy loosens up which will not happen until the housing market development starts to cool off. Medium bay leasing is also a very strong sector of the market mostly due to the demand for increased distribution and storage of building materials. We can expect to see more industrial development occur where vacant industrial land permits as build to suits become more popular for last mile distribution.
 3215-3275 S Dodge, a nine tenant, heavy industrial business park sold to Torch Properties, the sister company of BRD Realty.
Located in the Palo Verde industrial market, the largest industrial market in Tucson, this building was 82% occupied with tenants in the manufacturing, auto, landscaping, carpentry and gem show industries. Steve Cohen of Cushman & Wakefield PICOR and Max Fisher and Brandon Rodgers of BRD Realty handled the sale. 3215-3275 S Dodge, a nine tenant, heavy industrial business park sold to Torch Properties, the sister company of BRD Realty.
Located in the Palo Verde industrial market, the largest industrial market in Tucson, this building was 82% occupied with tenants in the manufacturing, auto, landscaping, carpentry and gem show industries. Steve Cohen of Cushman & Wakefield PICOR and Max Fisher and Brandon Rodgers of BRD Realty handled the sale.  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 -Minimal maintenance -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 maxfishh@live.com Industrialtucson.com |
AuthorMax Fisher, Industrial Properties Broker Archives
January 2023
Categories |
RSS Feed