Indiana developer moves forward with industrial park near Phoenix-Mesa Gateway Airport – The Business Journals

Another nearly 2 million square feet of industrial space is planned near the Phoenix-Mesa Gateway Airport.
Mesa City Council approved a subdivision plat on Oct. 3 from developer Indiana-based Scannell Properties for a nine-building project dubbed Mesa Gateway 202 that will include about 1.8 million square feet of new industrial space and another 100,000 square feet for new office space on the southeast corner of Loop 202 and Warner Road.
According to documents submitted to the city of Mesa, plans call for buildings that range from 72,538 square feet up to 554,769 square feet. Previous plans submitted last December show that Scannell plans future development on the northeast and northwest ends at the site in addition to the nine buildings. Those future development plans call for three build-to-suit structures on the northwest end and smaller pads for retail.
Phoenix-based civil engineer Hilgartwilson was the applicant on behalf of Scannell to City Council. On documents submitted to Mesa’s planning and zoning board last December, Ware Malcomb was listed as the architect for the industrial park while Sean Lake of Pew & Lake PLC submitted plans.
Scannell could not be immediately reached for comment.
Scannell acquired the 166-acre site in July 2021 from BD218 LLC, an entity led by ViaWest Group for more than $36 million. BD218 LLC is an entity with members including the family trust of Phoenix Suns and Phoenix Mercury owner Robert Sarver and Steve Hilton, executive chairman and former CEO of Meritage Homes, according to the Arizona Corporation Commission.
A timeline for when Scannell looks to break ground on Mesa Gateway 202 and what prospective kinds of tenants the developer hopes to attract to the park were unknown as of Tuesday.
Headquartered in Indianapolis, Scannell builds both build-to-suit and speculative projects across North America and Europe. In the Valley, Scannell is looking to develop a 240-acre site in southwest Phoenix near the Loop 202 South Mountain freeway.
Southeast Mesa is one of the hottest industrial markets in the country, with investors spending hundreds of millions of dollars buying land to start new projects in the area. Several large companies including Amazon and Lowes have recently announced plans for large distribution facilities — megawarehouses over 1 million square feet apiece — near Phoenix-Mesa Gateway Airport.
The Mesa submarket has more than 23 million square feet of industrial space and a 3.6% direct vacancy in the second quarter of 2022, according to research from Cushman & Wakefield
The Valley saw about 6.3 million square feet of space delivered in the second quarter, while 31 million square feet were under construction. Local industrial experts say higher clear heights for more storage, truck parking and higher power capabilities as must-haves for tenants. Power includes offering air conditioning, which allows tenants that will ultimately take the spaces to attract employees upon doing so. Power also includes the ability to put in electric vehicle chargers.
Across the Valley, about 68 industrial buildings broke ground, 14 buildings were completed and 160 buildings were under development in the second quarter. Strong demand has also driven rental rates up each quarter locally. Q2 saw average asking rates of $1.13 triple net per square foot. Leasing rates have increased over 12 months by 52%, CBRE data shows.
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