PUMA Leases 1 MSF Near Phoenix

303 Crossroads. Image courtesy of Cresset Real Estate Partners and Clarius Partners

Cresset Real Estate Partners and co-developer Clarius Partners have secured a full-building lease at 303 Crossroads, a master-planned industrial development totaling more than 1.7 million square feet in Glendale, Ariz.

Global brand PUMA signed a 15-year lease and will occupy the 1 million-square-foot Building A of the two-phase project. The leading global sportswear company plans to occupy the Class A industrial facility after its expected completion, in the last quarter of 2022.

CBRE’s Pat Feeney and Daniel Callahan represented the partnership in the lease negotiation, while Fred Regnery and Rob Martensen of Colliers International worked on behalf of PUMA.

A new industrial campus coming to Glendale

The upcoming 303 Crossroads is the first warehouse project to be completed in metro Phoenix within Cresset Real Estate Logistics Fund I. The investment vehicle of more than $250 million, that was created for the development of nine industrial facilities, closed at the end of May.

Cresset and Clarius broke ground on 303 Crossroads last October, with the help of the development team which includes Butler Design Group, Hunter Engineering and Layton Construction. The co-developers funded the project with a $101.4 million construction loan originated by New York Life Insurance Co., CommercialEdge data shows.

Both Building A and the 734,800-square-foot Building B have cross-dock configurations, will feature 40-foot clear heights and ample trailer and car parking. The larger structure will have 172 dock doors, four ramps and a 200-foot truck court, while Building B will feature 141 dock doors, five ramps and a 195-foot truck court. The second warehouse is anticipated to come online in the third quarter of 2023.

The industrial campus takes shape on 98.6 acres at the northeast corner of Northern Parkway and Loop 303. The area is home to prominent tenants, such as Boeing, Walmart, Red Bull and Amazon, among others. Based on CommercialEdge data, industrial vacancy rates across the Phoenix metro increased slightly month-over-month to 4.1 percent as of May, still below the national average (4.7 percent).

A top industrial development market

Industrial development activity continues to be red-hot in Greater Phoenix, according to a recent CommercialEdge report. The metro had the largest pipeline relative to stock in the nation as of May: 42.2 million square feet were under construction, representing 14.7 percent of the overall inventory, with an additional 35.9 percent in the planning and permitting stages.

In the span of two months, LPC Desert West, a division of Lincoln Property Co. announced plans for two Arizona megaprojects. The 1 million-square-foot I-10 International will take shape on 77 acres in Tucson, Ariz., while their $515 million project totaling 2.3 million square feet will be built on 140 acres in Glendale.