If you take a drive up north to Deer Valley Airpark you will see what a recovering economy looks like. Not only is there new construction visible on almost every major street in the airpark but also much of the new construction has already been filled or spoken for.
SPV Pinnacle II 4 buildings (10,000 to 14,000sf) are all in contract for purchase. They are not even scheduled for completion until November. The 220,000 sf Corridors Industrial Park project is about 70 percent full. 1 East Deer Valley 51,000 sf project is almost 50 percent full. Desert Gateway 173,000sf is almost 50 percent full. Pinnacle 7 161,000 sf is about 70 percent full. For the longest time there were no new companies moving into the area. The only tenants were those moving around looking for better rental rates. This year we are finally seeing an influx of new companies moving into the area. It’s another sign of a recovering economy.
Lots of activity in the lease market in Deer Valley Airpark and increasing rental rates. The average rental rate for these new industrial spaces are between $0.75 psf (NNN) and $1.00 psf (NNN) on their monthly rates. These are numbers that haven’t been seen since 2008.
Parc Pinnacle walls are up and will add 311,840 square feet to the industrial market in the next few months. This project has three buildings, 155,040 sf, 86,400 sf and 70,400 square feet of flex industrial and cross-dock distribution space with an asking rate of $0.60 psf (NNN).
There actually appears to be a shortage of available industrial product for purchase now in the Airpark. Just a few short years ago that thought was unimaginable. In the last year there have been over 25 sales of buildings between 8,000 and 20,000 square feet in Deer Valley Airpark. There are almost none that size left in this market. The industrial condo market has also tightened up with almost no condos left for sale. We can expect much more development over the next couple years in the industrial sector.
USAA has begun clearing the land at the North West Corner of Happy Valley and 19th Avenue in preparation for their mixed-use development. Their plan includes multi-family and single family residential as well as office, and retail uses. This development will cover approximately 400 acres between Happy Valley Road and Jomax on the north from 19th Ave to I-17. What a boon to the area.
The Commercial Real Estate market is “Blowin and Goin” again in Deer Valley Airpark.We look for this trend to continue for the foreseeable future.