The joint venture of McKinney Investments LLC, Westport Capital Partners and AEW has started construction on Latitude 303 Logistics, a two-building, 897,315-square-foot speculative development in Glendale, Ariz. Delivery is expected in the first quarter of 2022.
Latitude 303 Logistics will come online on 54.8 acres at the southeast corner of the Loop 303 and Glendale Avenue. The 742,693-square-foot Building A will feature 40-foot clear height, 120 dock doors and an expandable parking area for 409 cars and 125 trailers, while the 154,622-square-foot Building B will have 32-foot clear height and 27 dock doors, as well as parking for 188 cars and 18 trailers. CBRE’s Dan Calihan, Rusty Kennedy, James Cohn and Pat Feeney are the exclusive leasing agents for the project.
Situated in the Southwest Valley submarket, the development site is 15 miles west of downtown Glendale, along the Loop 303 corridor, neighboring Lincoln Property Co.’s 4.5 million-square-foot Park303 and Hines’ facility where MLILY has just signed a 1.3 million-square-foot lease. PV|303, the 1,600-acre business park to feature 20 million square feet of industrial, retail and office space at full build-out, is some 3 miles south.
The booming Southwest Valley
The Greater Phoenix industrial market is currently experiencing unprecedented growth. According to a recent CommercialEdge report, The Valley had roughly 23.2 million square feet of industrial space under construction as of June. In addition, CBRE research shows that 15.1 million square feet, or 65 percent of the metro’s pipeline, were underway in the Southwest Valley during the second quarter of 2021.
Some of the submarket’s notable developments include the 1.2 million-square-foot Building 1 of The Cubes at Glendale, one of the top projects that will reshape Phoenix, and Cotton 303 Logistics Center, a 915,160-square-foot speculative project taking shape right across from Latitude 303 Logistics.
The Southwest Valley also ranks as the metro’s top industrial submarket for net absorption, as the area continues to attract a wide array of companies, from manufacturing to third-party logistics and data centers. According to CBRE data, net absorption reached 4.8 million square feet in the second quarter of 2021, a 28.2 percent rise from the previous quarter, and nearly 8.6 million square feet year-to-date.
