BlueScope Secures Full-Building Prelease in Phoenix

BlueScope Properties Group has secured a full-building preleasing agreement at Blue Cactus Logistics, its 258,000-square-foot industrial project in Surprise, Ariz. Auto sales and financing company TriColor Auto Group will occupy the Class A development representing its third location in the state. JLL represented the landlord, while HPI Real Estate negotiated on behalf of the tenant.

Blue Cactus Logistics is a build-to-suit project located at the northwestern corner of Cactus Road and Summit Way. Upon completion, the facility will feature 32-foot clear heights, 60-foot speed bays, 3,000 amps of power, ESFR sprinkler systems, LED lighting, clerestory windows, 26 dock doors and up to 1,000 parking spots.

This is BlueScope’s first industrial development in Arizona, with completion scheduled for mid-2024. The development team includes Fleming Construction as general contractor and GH2 as architect of record. The tenant will bring approximately 200 employees to the location during the project’s Phase I and 500 employees upon delivery.

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The 26-acre site provides easy access to Arizona State Route 303 while being 13 miles from Phoenix-Goodyear Airport, 27 miles from downtown Phoenix and 30 miles from Phoenix Sky Harbor International Airport. The developer had worked with JLL to find land opportunities in the Arizona industrial market since prior to the pandemic, said BlueScope Properties Group President Matthew Roth, in prepared remarks.

JLL’s team of Executive Vice President John Lydon, Associate Kelly Royle and Executive Managing Director Anthony Lydon negotiated on behalf of the landlord. HPI Real Estate’s Industrial Partner Andy Thomas represented the tenant.

Phoenix leads the U.S. in terms of new supply

Once again, Phoenix industrial market led the U.S. for pipeline size, according to a recent CommercialEdge report. The metro had 47.7 million square feet underway as of November, accounting for 12.6 percent of existing stock. Although The Valley continues to be a hotspot for manufacturing companies, 78 percent of the projects that broke ground in 2023 involved logistics and distribution space.

In December, Lincoln Property Co. completed Park303’s second phase, adding 2.5 million square feet of industrial space in Glendale, Ariz. With this final phase delivered, the developer has officially completed the 3.7 million-square-foot Class A campus.