JLL sells fully occupied industrial building in Tempe, AZ for $16.20 million

Distribution facility, Tempe, AZ

PHOENIX, AZ, Sept. 9, 2019 – Demand for last-mile facilities has garnered the Phoenix office of JLL a $16.20 million sale price ($127 price-per-square-foot) for a Tempe, Arizona infill industrial building that is fully leased by the world’s largest express transportation company.

 

Tivon Moffitt 

JLL Senior Vice Presidents Tivon Moffitt and Peter Bauman, and Executive Vice President Steve Larsen, represented the building seller, MRM Tempe LLC. The buyer was an out-of-state partnership involved in a 1031 exchange.

Located at 8210 S. Hardy Dr. – less than one mile east of Interstate 10 – the 128,000-square-foot building was constructed in the late 1990s as a built-to-suit project. It has remained 100 percent occupied by the same company since delivery.

“Strategic importance as a last-mile facility, combined with recent building improvements, historical occupancy and a prime infill location were all significant drivers for the economics of this transaction,” said Moffitt.

“Last mile facilities remain in high demand,” added Bauman. “We continue to see cap rate compression for functional real estate, strong credit and long-term leases.”

Peter Bauman

According to JLL, strong and steady absorption has dropped the Valley’s industrial vacancy rate to a 10-year low of 6.7 percent. 

The Southeast Valley led that absorption during the second quarter as demand continues to rise for supply chain and e-commerce facilities.

“Data supports what we see on the ground, which is that the overall Phoenix industrial market continues to see strong absorption and rapid rent growth,” said Larsen. “That is especially true for in-demand markets like the Southeast Valley and infill locations like this Tempe facility.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions.

Steve Larsen

 In doing so, we will build a better tomorrow for our clients, our people and our communities. 

JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. 

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

In Phoenix, JLL is a market leader employing more than 590 of the region’s most recognized industry experts offering office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services, and related services within the real estate leasing, investment and management process.

 In 2018, the Phoenix team completed 75.3 million square feet in lease and sale transactions valued at $2.2 billion, directed $120 million in project management and currently manages a 32.4 million-square-foot portfolio. For more news, videos and research resources on JLL, please visit www.jll.com.

Contact:

 Stacey Hershauer

Phone: +1 480 600 0195

Email: stacey@focusaz.com