Developers Start Trio of Speculative Warehouses at Gilbert, Arizona, Business Park

Article originally posted on CoStar on November 22, 2021

E-Commerce Expansion Fuels Logistics Demand Near Airport, Rail Lines

The second phase of Gilbert Spectrum is expected to finish construction in May. (CoStar)

Developers have broken ground on three speculative warehouses at the Gilbert Spectrum industrial park in Phoenix’s Gilbert suburb, wagering the region’s growth as a hub for warehousing and logistics will be ongoing.

GID Investment Advisors, based in Boston, and Charlotte, North Carolina-based SunCap Property Group expect to finish the buildings at McQueen and Elliot roads by May.

The first Gilbert Spectrum building was a 136,000-square-foot warehouse at 196 S. McQueen Road that opened in 2019 that is fully leased to three tenants. A 120,000-square-foot administrative and engineering building for aerospace and defense giant Northrop Grumman opened earlier this year.

The latest phase of the 64-acre business park includes warehouses of 66,446 square feet, 100,000 square feet and 142,200 square feet with heights ranging from 28 to 32 feet that can be divided into smaller spaces for multiple tenants, the companies said in a statement.

Rising dependence on e-commerce and home deliveries during the pandemic has fueled logistics demand, creating fertile conditions for speculative development — construction of property without signed tenants — in Gilbert, according to a CoStar market report.

Many tenants are looking to be near Phoenix-Mesa Gateway Airport and the area’s rail lines, according to the report.

For the Record

Lee & Associates Arizona’s Ken McQueen and Chris McClurg are the project’s leasing brokers. Graycor is the general