Major industrial project meets demands of Phoenix residents
In Phoenix’s southwest valley, a 38-acre land sale that will be the site of a 600,000 square foot industrial facility will meet the high demand for such space that currently is unavailable in the city. This major addition will create construction jobs and promote employment in the industrial sector, potentially attracting more people to the region. Similarly, purchasing real estate in Phoenix is among one of the best investments because Phoenix prices are down approximately 45 percent.
The construction site is located at the northeast corner of 63rd Avenue and Sherman Way. Named the Estrella Logistics Center, the $30 million project is expected to begin next month and be completed by May 2013. The joint venture of Seefried Industrial Properties of Atlanta and USAA Real Estate Co. of San Antonio will be a 592,500-square-foot cross-dock distribution building.
Officials from the project reported that currently there is about 6 million square feet of user demand in Phoenix for industrial space of 100,000 square feet or more, and supply has not progressed at the same level of demand in the area. In the first quarter of the year, there was 95,598 feet of net industrial absorption in the city.
“The only local industrial construction that we’ve seen completed this year falls in the single-tenant, build-to-suit category,” Marc Hertzberg, a managing director who represented the buyer, told GlobeSt. “This does little to satisfy this market’s broader demand for large blocks of space. This will be the key driver for new Phoenix speculative industrial development in 2012.”
Right now may be a perfect time to purchase a home in the area for many reasons. Not only is industrial development expanding, creating more jobs in the area, but home prices are also still lower than they should be. According to Time Magazine, the housing price recovery is taking longer than it did in recessions of 1973-75 and 1981-82 because home prices dipped as much as four times as low. However, experts believe that there is a change prices will bounce back in proportion to the dip resulting in major price increases.
For those that can afford it, purchasing a home is generally cheaper than renting one and tax benefits are much greater, Time reports. Right now, home prices are lower than they will likely be in the next few years because of either economic recovery or inflation.