PhoenixMart Global Commerce Center Breaks Ground in Arizona

By Gail Kalinoski, Contributing Editor

Construction has begun on PhoenixMart, a $150 million, 1.7 million-square-foot global commerce center in Casa Grande, Ariz., expected to bring more than 9,000 jobs to the region.

The official groundbreaking was held Thursday in Casa Grande and attracted hundreds of local residents along with company executives, politicians and former U.S. Labor Secretary Elaine Chao.

In the planning stages since 2011, the 585-acre master-planned community to be built by AZ Sourcing of Scottsdale, Ariz., will include 4 million square feet of support facilities. The site is located on Florence Boulevard near Interstate-10. PhoenixMart is expected to open in late 2014.

Arizona is considered the ideal location for the project because it provides access to the Union Pacific’s double-track railroad, two international airports in Phoenix and Tucson, International Inland Port that links the Mexican ports to the U.S., and I-10 and I-8 freeways that are direct routes to the East and West Coast.

Based on successful marketplaces in places like Yiwu in China and Dragon Mart in Dubai, it will be the largest commerce center in the Western Hemisphere. The center is described as a permanent trade show that will be a showcase for manufacturers and distributors in six segments: home and hotel, industrial and automotive, electronics and accessories, food and beverage, office and recreation and fashion and variety. While the developers don’t have tenants signed yet, they are building up their leasing team and have been getting interest in the project that is expected to have 1,750 showrooms. Services will be provided to tenants including legal, logistics and warehousing, human resources and operation, trade events and marketing.

“PhoenixMart’s mission is to empower American manufacturers and distributors, while providing a venue to showcase to domestic and international buyers,” Jeremy Schoenfelder, PhoenixMart president, said in a news release. “With the exposure created by housing more than 2,000 companies under one roof, manufacturers and distributors have an efficient platform to connect both domestic and international end users. PhoenixMart tenants will also benefit from the various service programs aimed to reduce their cost and promote their sales.”

While the project will be featuring many U.S. companies, along with those from Canada and Mexico, PhoenixMart received approval earlier this year from the federal government for EB-5 investments, an immigrant investor program created in 1999 as an economic stimulus. It allows investments from $500,000 to $1 million per investor, who can apply for green card status for themselves and their families if they are also creating or saving at least 10 full-time jobs. Company officials said in late May, when the approval was granted, that the EB-5 status was important to move the project forward.