SKB Buys Phoenix-Area Business Center

Chandler Business Center. Image courtesy of SKB

ScanlanKemperBard has acquired Chandler Business Center, a 106,892-square-foot flex/industrial park in Chandler, Ariz. Fullerton Properties previously owned the property, according to Commercial Edge data. The asset last changed hands in 2019, when the current seller bought it for $13.2 million from Montana Avenue Capital Partners.

Completed in 2002, the property encompasses one single-story building on a 10.6-site at 6150 W. Chandler Blvd. The property offers 18-foot clear height ceilings and a parking ratio of 5.6 spaces per 1,000 square feet.

Chandler Business Center is part of Southeast Valley’s extensive retail and manufacturing center, roughly 17 miles from downtown Phoenix. Sky Harbor Airport is some 12 miles north of the property, via Interstate 10.

At the time of the transaction, the location was fully leased to a tenant roster that includes Newark, an electronic goods retailer, Fusion Power, solar power systems provider, and Children’s Cancer Network.

SKB plans to implement a number of upgrades at the property, which will allow the company to capitalize on rent growth.

Phoenix expands industrial pipeline

Phoenix’s industrial market registered a strong second quarter, due in particular to a thriving manufacturing sector. The vacancy rate clocked in at 7.6 percent, a 70-basis-point improvement from the previous quarter, according to a recent JJL report. Southeast Valley was one of the best performing Phoenix submarkets, closing the quarter at a 6.6 percent vacancy rate. Rents in the area were also higher than the $0.58 per square foot average rate in the metro, coming in at $0.73.

When it comes to construction activity, Phoenix totaled nearly 23.4 million square feet of industrial space underway as of late July, ranking third in the U.S. The pipeline represented an impressive 8.9 percent of total stock, much higher than the figure of other active metros, underpinning the market’s rapid growth.