CRE

GET REAL

by Mike Hunter

Q3 Phoenix Industrial Dominated by Warehouse and Distribution Space The onset of COVID-19 is driving industrial Year-to-date, metro Phoenix has delivered demand in Phoenix, with warehouse and just over 8.5 million square feet of new industrial distribution space emerging as leaders in an construction, nearly double that of the first three industrial market that is rapidly growing in both quarters of 2019. Of that space, warehouse popularity and sophistication, according to the and distribution users have absorbed nearly 6.2 new JLL Q3 Phoenix Industrial Insight Report. million square feet, with 81 percent of activity

Phoenix recorded just over 1.6 million square occurring in the West Valley. feet of absorption during the third quarter — up However, both the West and East Valleys 60 percent from the same time last year, the continue to thrive, with overall metro Phoenix report says. On the construction front, projects industrial asking rents remaining stable at $0.58 catering to e-commerce, medical supplies and per-square-foot quarter-over-quarter. The food and beverage dominate the local pipeline, Southeast Valley enjoyed a $0.02 per-squarerepresenting nearly 7.2 million square feet of the foot rental rate jump during the third quarter, approximate 8.2 million square feet of new Valley with Chandler leading the charge at an average industrial product that is under construction now. asking rent of $0.79 per-square-foot.

“It’s always important, especially during periods Demand is steadily driving down Phoenix’s of rapid expansion, to keep our eye on the occupier industrial vacancy rate, now at an average 7.7%. and demand drivers,” said JLL Managing Director JLL expects industrial to remain highly active Pat Harlan. “Currently, our strong fundamentals and competitive for the remainder of 2020 and are the result of Phoenix’s steady population into 2021, particularly as ecommerce continues growth and a systemic shift in consumer behavior to grow in popularity and an expanding Phoenix that is creating the need for more industrial population requires more food and beverage and space. Developers, in turn, are delivering highly medical support. —JLL functional speculative product to satisfy demand and keep our market in equilibrium.” JLL us.jll.com 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

Golf Villa Resort Adjacent to The Phoenician

Replay Destinations plans to develop Ascent at The Phoenician®, a private residential community that will sit at the foot of Camelback Mountain, overlooking the Phoenician® Golf Club. Replay has acquired the development parcels from affiliates of Host Hotels & Resorts, Inc., owner of The Phoenician®, a Luxury Collection Resort, which is consistently recognized as one of the world’s finest luxury resort destinations.

Ascent at The Phoenician® will consist of approximately 195 properties, including condominiums at the base of Camelback Mountain and Ascent Golf Villas along the first fairway of the Phoenician Golf Club. A planned private pool and fitness amenity tucked up against Camelback Mountain will be an intimate gathering place for wellness, socializing and relaxation. With views overlooking the new Phoenician Golf Club and Camelback Mountain along with the city lights of Scottsdale, home designs will feature contemporary architecture integrating warm, natural materials, expansive windows and large outdoor living areas. Residents will also have a limited opportunity to join a Phoenician Amenity Access Program that provides Ascent real estate owners with access to resort amenities.

Replay’s development team for Ascent at The Phoenician is based in Phoenix, and includes Nelsen Partners, an architecture & planning firm founded in 1990; Vallone in Phoenix Faciliteq, a leading workplace solution provider in the Southwest, opened its newest adaptive reuse project last month. Developed with sister company BWIQ (Build With IQ), the Five55 Melrose building (555 W. Turney Ave., Phoenix) transforms a former neighborhood fitness center into a modern co-working environment designed with the postCOVID world in mind.

Five55 Melrose was built in 1977 as a fitness center and racquetball club that served midtown Phoenix for 30 years. Faciliteq founder Quentin Abramo and BWIQ president John Shinners knew that respecting the history of the building was important for both the community and for bringing the space into in the future. Original features of the club still remain, from the courts that have become office and lounge areas to the center walkway that is now a gathering point for presentations and networking.

Even before the novel coronavirus changed daily office life, Faciliteq has led the way in flexible workspace design that promotes safe environments. Features of Five55 Melrose showcase many of the solutions shared business spaces are now adapting to. Underfloor air distribution, instead of Design, a leading, full-service interior design firm specializing in exquisite residential and commercial projects; Floor Associates, a landscape architecture and planning firm; and bulthaup Scottsdale, a globally-recognized company producing premium kitchens custom-made in Germany.

Nathan And Associates Inc. was hired by Host to represent them in the marketing of the development parcels and were also responsible for marketing 51 finished lots on behalf of Replay. Joe Bushong and Leslie Jenkins of Russ Lyon Sotheby’s International Realty are the listing agents for Ascent at The Phoenician.

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COVID-Conscious Co-Workspace

Ascent at The Phoenician ascentatthephoenician.com overhead venting, delivers cleaner air and better indoor air quality with up to 60% reduction in exposures to occupantgenerated pollutants. Sixteen private office suites allow for personal privacy for each team while still maintaining an energetic, community atmosphere. And moveable walls with modular power and data allows workers to easily adapt as workspace needs or technology changes.

Five55 Melrose was completed with partnership with architects William Erwin of Erwin Architecture and Don Andrews of Andrews Design Group as well as Sharp Construction. Interiors were completed by Faciliteq in partnership with Jennifer Goguen of Goguen Designs.

Faciliteq faciliteq.com