Three Class A buildings changing hands in Arizona

Jones Lang LaSalle recently brokered a commercial deal in the Phoenix area.

More than 300,000 square feet of Class A building space is changing hands in the Phoenix area.

A pair of publicly traded companies, the San Francisco-based Prologis and Denver-based DCT Industrial Trust, completed a sale worth $22.1 million of Broadway Industrial Porftfolio. The deal includes a trio of Class A buildings, with the Phoenix office of Jones Lang LaSalle represented the seller in the transaction.

Mark Detmer and Bo Mills, Jones Lang LaSalle managing directors, oversaw the arrangement. The deal is Jone Lang LaSalle's second investment in the area this quarter.

"These buildings are exceptional in that they combine outstanding functionality and full occupancy with a true Class A image in an infill location," said Detmer.

Prologois, a leading owner and developer of industrial real estate, sold the properties to DTC Industrial Trust for an average of $71.74-per-square foot, which is more than the $12 industrial space average in Phoenix. DCT Industrial Trust specializes in the acquisition, development, leasing and management of light industrial properties and bulk distribution.

According to data from LoopNet, as cited by the Phoenix Business Journal, the average square foot of industrial space goes for $59.47.

Location, location, location
Commercial real estate is no different than residential. Location drives the market and the price, and according to Detmer, the three Class A buildings changing hands are in a great spot.

The warehouses are roughly one-half mile away from one another near major intersections at Southern Avenue and Hardy Drive.

"This includes access – within minutes – to many of the key amenities that a high-end industrial user might need: an extensive freeway network, international airport, deep labor pool and host of retail opportunities," Detmer said.

The Southern Avenue-Hardy Drive cross street resides in the third-largest industrial submarket in the Valley, according to the Phoenix Business Journal. Second-quarter data from Jones Lang LaSalle suggests the Valley's industrial submarket has around 28.75 million square feet of inventory.

Busy time for Jones Lang LaSalle
The Class A Building deal is the second closed sale worth more than $20 million netted by Jones Lang LaSalle this quarter.

The firm, which employs about 400 people in the Phoenix region, concluded a $27.1 million sale of Broadway 101 Office Park in July. That deal was said to have been fueled by robust market demand.

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