Stream Realty Tapped as Leasing Agent for 3 MSF Phoenix Project

Mack Innovation Park Deer Valley. Image courtesy of Jeff McCall from McCall Architects

Stream Realty Partners has a major new assignment on its plate now that Mack Real Estate Group has selected the company as leasing agent for Mack Innovation Park Deer Valley, a master-planned industrial development in Phoenix that will ultimately encompass approximately 3 million square feet. Stream’s initial task will involve securing tenants for the 917,000-square-foot first phase of the project, which recently broke ground.

MREG is erecting Mack Innovation on a sprawling site adjacent to Deer Valley Airport, roughly 20 miles north of Phoenix’s central business district. The property is also approximately 25 miles from Phoenix Sky Harbor International Airport and within close proximity of Interstate 17 and State Route 101, allowing for easy access to the Greater Phoenix area and beyond.

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“Employers love the Deer Valley area because they have the ability to attract a strong labor force from a majority of the metro Phoenix area,” James Cohn, senior vice president with Steam Realty Partners, told Commercial Property Executive. “Deer Valley Airport and nearby Scottsdale Airpark make the North Phoenix/Scottsdale area a very attractive location from an executive perspective.”

Of particular note, Mack Innovation will sprout up just 6 miles from Taiwan Semiconductor Manufacturing Co.’s $12 billion chip manufacturing facility, the initial phase of which is scheduled to open for operations in 2024. “The recent news of TSMC has certainly accelerated the tenant demand from semi-conductor related suppliers and other related companies but even without TSMC in the picture, the Deer Valley submarket has performed incredibly well over the last decade,” Cohn added.

Answering the call

Mack Innovation’s initial phase will consist of seven speculative buildings designed to accommodate a variety of users. With facilities ranging from 63,000 square feet to 208,000 square feet, the park will be able to offer spaces as small as 4,800 square feet. The warehouses will be clustered on non-contiguous sites, with Site A consisting of a three-building complex and Site C offering a group of four structures.

McCall & Associates Architects and Deutsch Architecture Group are behind the design of Mack Innovation, which will be a state-of-the-art development offering the amenities industrial users need and desire in new developments, including clear heights ranging from 24 feet to 32 feet, rear-loaded, dock-high loading doors, ESFR sprinklers and copious amounts of parking space. The buildings will incorporate green elements such as energy-efficient clerestory windows and LED lighting.

MREG has selected Nitti Builders LLC to serve as general contractor for Mack Innovation. The first phase of the industrial park is on track to reach completion in 2023. Industrial construction activity in metropolitan Phoenix is at an all-time high, with more than 21 million square feet of space due to deliver in the second half of 2022, according to a report by Avison Young. Stream, however, believes the local market is primed to absorb the first phase of Mack Innovation.

“The Deer Valley submarket already demonstrated very strong market fundamentals prior to the TSMC announcement. Now with TSMC in the picture, that growth has increased exponentially, and we are seeing even more tenant demand than before,” Cohn said. “Mack Innovation Park Deer Valley is strategically positioned to take advantage of these incredibly strong demand drivers. The first phase of the project is just the tip of the iceberg, as we have several future phases planned to help keep up and continue to accommodate the demand in this highly desirable submarket.”

The second phase of Mack Innovation will yield approximately 410,000 square feet for a total of 1.3 million square feet of premier spec industrial warehouse space. The remaining 115 acres at Mack Innovation will remain available for sale, build-to-use projects, as well as additional spec development endeavors. Construction of the second phase will likely get underway in 2023.