As the country recovers from one of the worst recessions in American history The Deer Valley Airpark is showing signs of a rebound that might rival the greatest previous growth period between 2005 to 2008. We have seen about 1.2 million square feet of new construction in industrial product over the last three years. That’s about a 10 percent increase in product in just three years, which is truly remarkable considering how depressed this market was in the previous half dozen years.
Upon the completion of Loop 101 to I-17 connecting Scottsdale to Deer Valley Airpark, we witnessed an explosion of growth and development starting in 2005 that really transformed the airpark into a business park. Previously Deer Valley Airpark was a heavy industrial park but almost all new construction 10 years ago was light industrial, high-end office and significant retail development.
There has been a slow and steady recovery in the Airpark beginning about 3 years ago. Large multi-tenant lease products: Pinnacle 7, Park Ladera, Corridors Industrial Park, Desert Gateway, 1 East Deer Valley and Enterprise Deer Valley and others have been built or are under construction during this period. Most of these are 100,000 to 200,000 sf projects, and all available for lease.
Two large freestanding industrial developments available for purchase came on line or are under construction currently. SPV Pinnacle Peak Phase 1 & 2 offering 10,000 to 15,000 sf for purchase at Pinnacle Peak and 19th Ave and Spectrum Ridge on 7th Street (which has already sold out their 8 buildings.)
Pricing is approaching the all-time highs we saw in 2007& 2008. Lease rates now average between $0.75 psf to $0.85 psf (NNN) for new construction and building sales prices are between $125 to $140 psf for new product. Even land prices, which fell to $0.10 to the dollar in 2009, are back between $7 & $10 psf for industrial land.
Avilla Deer Valley is a residential lease product, approximately 125 units on 17+ acres, which just began construction on the North East corner of Pinnacle Peak and I-17. There are rumors of a new hotel coming just south of Happy Valley Road and possibly a new retail development at 19th Avenue and Happy Valley Road.
The Deer Valley Airpark is thriving again. There are many investors and developers that have committed to The Airpark and certainly are investing heavily in its future growth potential. The future looks bright for Deer Valley Airpark.