Is More Spec on the Way?
First came Origami Owl. Then came Latium USA. Now an interiors company is headed to a building off of I-10 and South 7th Street, the capstone on a recovering industrial market. Will spec soon follow?
Creative Touch Interiors inked a 37k SF deal at 1002 E University Dr, EastGroup Properties' 73k SF distribution center called East University. Jackie, along with colleagues John Grady and Jim Wilson, brokered for the landlord, while CBRE's Pat Feeney and Chris Gadrix repped CTI. Now, for the first time since the recession, some industrial areas in Phoenix are seeing vacancies dip below 10%. (If you hadn't noticed, it's not as easy to stretch your legs.) “When that happens in Phoenix, we start to see speculative building,” she says.
And that, so far, has held true. According to Colliers, net absorption among Phoenix's industrial properties included 3.6M SF of spec deals. And this year could see other spec deals from large institutional players such as Clarion Partners, EastGroup Properties, and Hillwood, Jackie says. In addition to the CTI lease, her team also help broker Origami Owl's 150k SF lease in 10 Chandler Business Park (pictured) and Latium USA's consolidation into DCP Industrial's 1640 S 39th Ave.