PROPERTY, GROWTH AND LOCATION
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Photo courtesy of Landsea Homes (far right)
Q3 Phoenix Industrial Dominated by Warehouse and Distribution Space The onset of COVID-19 is driving industrial demand in Phoenix, with warehouse and distribution space emerging as leaders in an industrial market that is rapidly growing in both popularity and sophistication, according to the new JLL Q3 Phoenix Industrial Insight Report. Phoenix recorded just over 1.6 million square feet of absorption during the third quarter — up 60 percent from the same time last year, the report says. On the construction front, projects catering to e-commerce, medical supplies and food and beverage dominate the local pipeline, representing nearly 7.2 million square feet of the approximate 8.2 million square feet of new Valley industrial product that is under construction now. “It’s always important, especially during periods of rapid expansion, to keep our eye on the occupier and demand drivers,” said JLL Managing Director Pat Harlan. “Currently, our strong fundamentals are the result of Phoenix’s steady population growth and a systemic shift in consumer behavior that is creating the need for more industrial space. Developers, in turn, are delivering highly functional speculative product to satisfy demand and keep our market in equilibrium.”
Year-to-date, metro Phoenix has delivered just over 8.5 million square feet of new industrial construction, nearly double that of the first three quarters of 2019. Of that space, warehouse and distribution users have absorbed nearly 6.2 million square feet, with 81 percent of activity occurring in the West Valley. However, both the West and East Valleys continue to thrive, with overall metro Phoenix industrial asking rents remaining stable at $0.58 per-square-foot quarter-over-quarter. The Southeast Valley enjoyed a $0.02 per-squarefoot rental rate jump during the third quarter, with Chandler leading the charge at an average asking rent of $0.79 per-square-foot. Demand is steadily driving down Phoenix’s industrial vacancy rate, now at an average 7.7%. JLL expects industrial to remain highly active and competitive for the remainder of 2020 and into 2021, particularly as ecommerce continues to grow in popularity and an expanding Phoenix population requires more food and beverage and medical support. —JLL
by Mike Hunter
Landsea Homes Innovates Virtual Home Design Landsea Homes — a homebuilder whose projects in Arizona include Alamar in Avondale, Harvest in Queen Creek and Verrado in Buckeye — has launched a new High Performance Homes interactive experience. The new program allows homebuyers to visualize and virtually experience every element and feature of the HPH program, from home automation to sustainability and energy savings. Supported by a partnership with leading technology company, Apple®, the homes utilize the Apple HomeKit™ environment to operate all home automation features from one mobile application. The smart home automation features, installed and compatible with Apple HomeKit™, include an Apple TV® media manager device, MeshNet wireless internet throughout the home, entry door locks, thermostat control, garage door opener control, light dimmer switches, doorbell camera pre-wire and high-touch customer service with an individualized white glove training session. Landsea Homes includes various features that contribute to healthy living, including appliances that reduce energy waste and tankless water heaters that generate hot water in a faster timeframe. The use of environmentally-conscious building materials and the implementation of waste-reduction programs help preserve and protect the beauty of the natural world and lessen the impact on the planet. landseahomes.com
JLL us.jll.com
Projects catering to e-commerce, medical supplies and food and beverage dominate the local pipeline, representing nearly 7.2 million square feet of the approximate 8.2 million square feet of new Valley industrial product that is under construction now.
17
DEC. 2020
INBUSINESSPHX.COM
