GID JV Grows Phoenix Industrial Campus

The joint venture between GID and SunCap Property Group has completed three more warehouses, totaling some 310,000 square feet, at the 64-acre Gilbert Spectrum industrial park in Gilbert, Ariz. Graycor Construction Co. serves as general contractor and Blamer Architectural Group is the project’s architect. 

At full build-out, Gilbert Spectrum will include up to 850,000 square feet of office, flex industrial and technology-related space. Currently, the industrial campus has one pad remaining for build-to-suit industrial development, in addition to the already-existing and under-construction facilities.

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The partnership broke ground on the three warehouses, known as Building 9, 10 and 11, in November 2021. According to CommercialEdge data, the construction was financed with a $25.3 million loan provided by Citizens Financial Group, with a maturity date set in 2024.

Close to fully leased

Principals Ken McQueen and Chris McClurg with Lee & Associates are in charge of leasing the buildings that are 93 percent occupied, as follows:

• Building 9: Northrop Grumman leased the entire 100,000-square-foot facility, thus expanding its footprint at Gilbert Spectrum; the multinational aerospace and defense technology company had moved into Building 5 in early 2022.

• Building 10: The moving company S&M Moving Systems signed a full-building lease at the 142,200-square-foot warehouse.

• Building 11: Banner Industries occupies 27,097 square feet while Varsity Brands took up 18,047 square feet in the third completed building, leaving 21,000 square feet of space available at the 66,400-square-foot facility.

The three warehouses feature clear heights of 28 and 32 feet, ESFR fire sprinklers and a total of 113 dock-high and drive-in doors; they also share a 190-foot loading court.

Located at 290, 280 and 260 S. McQueen Road, some 21 miles from downtown Phoenix, the facilities have access to Interstate 10, Loop 101 and U.S. Highway 60. Phoenix-Mesa Gateway Airport is only 12 miles away. The surrounding area is also home to an Amazon hub, Dillard’s Distribution Center and several other logistics centers.

Recent Greater Phoenix industrial activity

According to a fourth quarter 2022 Colliers report on the Greater Phoenix industrial market, the metro’s pipeline grew 6.8 percent quarter-over-quarter to 43.7 million square feet. New supply amounted to 26.2 million square feet in 2022, marking a 7 percent increase in total inventory over the year.

Since the beginning of this year, The Valley saw a couple of significant industrial projects break ground. Lincoln Property, in partnership with Harvard Investments, started construction on the first phase of Goodyear AirPark. At full build-out, the campus will encompass 7 million square feet.

Another recent development is Germann Commerce Center, a 1 million-square-foot industrial campus taking shape in the Phoenix suburb of Queen Creek, Ariz. Completion is expected in the first quarter of 2024.