Owner-Users Building Ahead of Interest Rate Rise

Janet Yellen might be holding off on raising interest rates for now, but it won't be long—and the anticipation of an increase is spurring build-to-suit deals in Phoenix.

LGE Design Build president Dave Sellers tells us that he's seen increased activity in owner-occupied build-to-suits in the Phoenix market over the last 12 months. Low interest rates are a factor, but so is the lack of available quality existing product, he says. It's also important that there are specialists in the market (such as LGE) that can deliver this kind of product in a timely manner, he adds.

Recently LGE completed construction on a 64k SF office and warehouse building in Chandler for Savage Universal, which provides products for the photography industry (including 65% of the world market in photographic background paper). Needing a more efficient space for its HQ, Savage wanted a new building at the gateway of the Chandler Airport Business Park at 2050 S Stearman Dr. The building also includes a small museum, located near the front lobby, that will showcase historic equipment, catalogs, brochures and other company documents dating to the 1930s.

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