Lincoln Property Starts 2.5 MSF Phase of Phoenix-Area Project
Phase one of the industrial park sold for a record price.
LPC Desert West, the Southwest arm of Dallas-based Lincoln Property Co., has begun work on the three-building, nearly 2.5 million-square-foot phase two of the company’s Park303 in Glendale, Ariz.
The project’s first phase was sold last September to BentallGreenOak for $186 million, which reportedly was the highest single-building industrial sales price in Arizona history. That phase had been developed originally as two Class A industrial buildings, but was later combined to create a single 1.3 million-square-foot building, under a long-term lease by Walmart.
Park303 directly fronts the Loop 303 freeway and is 1 mile from the Northern Parkway.
Phase 2 will consist of Building A, of 629,835 square feet on almost 38 acres, Building B, of 483,300 square feet on more than 30 acres, and Building C, of almost 1.3 million square feet on about 72 acres. As with Phase 1, Buildings A and B are designed to quickly convert into one larger, 1.2 million-square-foot facility (with 104,052 square feet of infill space) to meet the needs of a major single user.
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Phase 2 building amenities include 40-foot clear heights, touchless technology throughout, 25-foot-tall glass entries, 3,000 amps of power (expandable), 7-inch slabs over 4 inches of crushed rock and steel moment frame shear bracing that allows for automated racking and picking equipment, as well as 5- by 10-foot clerestory windows on all elevations.
Phase-wide amenities include a basketball/pickleball court, barbecue station and shaded outdoor eating area.
In all, the Phase 2 buildings will provide 430 dock doors, 778 trailer stalls and more than 1,556 parking stalls (all expandable). The buildings are also Foreign Trade Zone capable.
At full buildout of the master plan, Park303 will encompass 210 acres with the capacity to support nearly 4 million square feet of Class A industrial development.
This second phase of Park303 means that LPC Desert West now has almost 7 million square feet under development in Arizona, Nevada, Utah and New Mexico.
In 2021, the Phoenix industrial space market had its second straight record year, with net absorption, rents and sales volume at all-time highs and vacancies dropping to an all-time low, according to a fourth-quarter report from Kidder Mathews.
The Northwest submarket is typical of the metro situation, with 4.2 percent direct vacancy and 4.4 percent total vacancy. 2021 direct net absorption was nearly 7.5 million square feet, against an inventory of 72.9 million square feet. The average direct triple-net rental rate was $0.58, again according to Kidder Mathews.