Speculative Space Getting Built in West Valley

Article originally posted on Phoenix Business Journal on July 9, 2017

There hasn’t been much speculative commercial real estate built in the Phoenix market since the last crash.

And what has been built — build-to-suit or speculative — has mostly been happening in Tempe, Chandler and near Phoenix Sky Harbor International Airport.

But there is a new speculative, Class A industrial project getting built in the West Valley.

Thousand Oaks, California-based Silagi Development and Management is building Phase I of Skyway Commons.

The spec project totals 110,221 square feet and is aimed at smaller and mid-sized tenants.

JLL (NYSE: JLL) is handling the leasing via brokers Riley GilbertAnthony Lydonand John Lydon.

The West Valley is home to some big distribution, e-commerce and industrial operations. That includes the likes of Amazon.com Inc. (Nasdaq: AMZN), Wal-Mart Stores Inc. (NYSE: WMT), Macy’s (NYSE: M) and ConAir.

“Smaller to mid-sized industrial tenants in the northwest Valley have been significantly underserved for years,” said Gilbert. “Skyway Commons adds meaningful inventory options in a location that this type of user wants to be, and with grade-level and dock-level loading amenities that, until now, have not been available for them in Surprise.”

The project is at Dysart Road and Rio Glass Solar Road in Surprise.

The JLL brokers say there are 1.4 million people living within a 30-minute commute of the property.

And there continues to be population gains in the West Valley markets such as Buckeye and Goodyear.

The project is slated to be completed in January.

“We’re delighted to welcome another Silagi Development and Management project to Surprise, and our team is looking forward to working with JLL to bring new businesses and jobs to the community,” said City of Surprise Economic Development Director Jeanine Jerkovic.