Full Steam Ahead for Phoenix’s Largest Spec Industrial Project

Phase one of CapRock Partners’ megadevelopment is slated for completion in 2023.

CapRock West 202 Logistics, Phoenix

CapRock West 202 Logistics. Image courtesy of CapRock Partners

Construction progresses at CapRock West 202 Logistics, the 3.4 million-square-foot speculative industrial development underway in Phoenix, as CapRock Partners has officially started construction on the first phase of the 183-acre infill project that was announced in September. Development partners include CCA Architects, Willmeng Construction as general contractor and Kimley-Horn as civil engineer.

The logistics park will come online within the southeast quadrant of Interstate 10 and Loop 202, at the intersection of North 59th Avenue and West Van Buren Street. Upon its completion, West 202 Logistics will be the largest spec industrial development in Phoenix’s history. Furthermore, the project is the first large-scale industrial campus to take shape alongside the recently completed Loop 202, also known as the South Mountain Freeway.

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The project’s Phase 1 was designed to include five warehouses totaling 2.5 million square feet of space on a 140-acre parcel. With clear heights ranging from 36 to 40 feet, the buildings will feature both dock-high and ground-level loading with secured concrete truck courts. Completion is slated for the first quarter of 2023. Colliers Vice Presidents Don MacWilliam and Payson MacWilliam will spearhead the project’s leasing efforts.

The development site is roughly 7 miles from downtown Phoenix and 12 miles from Phoenix Sky Harbor International Airport in the Phoenix West submarket. The property neighbors distribution hubs and logistics facilities operated by Amazon, Kroger, CVS and Target, among others. It is also located east of 101 at Van Buren, a two-building, 633,321-square-foot distribution center developed by Seefried Industrial Properties.

A solid Phoenix footprint

Jon Pharris, cofounder and president of CapRock Partners, said in prepared remarks that, since 2020, the firm has added some 3.7 million square feet of Phoenix-area industrial product to its investment, development and management portfolio; West 202 Logistics will bring CapRock’s Valley footprint to approximately 7.5 million square feet.

CapRock’s portfolio includes nearly 30 million square feet of industrial real estate assets in Central and Southern California, Las Vegas and Phoenix. In October, the developer broke ground on a three-building speculative project in Norco, Calif., estimated to come online in the third quarter of 2022.

A market in high demand

Due to its geographic position, Phoenix has become a critical node in the national supply chain. In a prepared statement, Payson MacWilliam noted that demand for big-box industrial product in The Valley continues to grow as retailers and suppliers rethink their distribution strategies and Southern California industrial real estate reaches near-full capacity.

As a result, the metro’s industrial market continues to fire on all cylinders, remaining the country’s undisputed leader for construction activity. According to a recent CommercialEdge report, Greater Phoenix had more than 32.6 million square feet of industrial space underway as of December, representing 11.8 percent of stock.

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