Real Estate

Greystar Completes 1 MSF Phoenix-Area Industrial Development

Greystar has completed Gateway Grand Phase I, a 1 million-square-foot industrial development in Mesa, Ariz. The two-building project marks the company’s first industrial delivery in the state.

The Gateway Grand project is move-in ready for robust aerospace and advanced manufacturing users. Image courtesy of Greystar

The international development and management company broke ground on the Class A industrial development back in 2022.

Derek Builders serves as the project’s general contractor, along with Deutsch Architecture Group as the main architect. CBRE’s Jackie Orcutt, Kevin Cosca, Pete Wentis and Jonathan Teeter are the project’s exclusive leasing brokers.

Gateway Grand Phase I comprises two 537,429-square-foot buildings featuring 40-foot clear height, 60-foot x 60-foot column spacing, 70-foot speed bay, ESFR sprinklers and 7-inch slabs, along with 98 dock-high and 4 grade-level doors each. The facilities are also equipped with 3600 amps of power—easily expandable via additional SES electrical gear on order—while supporting approximately 518 auto parking spaces.

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The one-story buildings also include as many as 3,200 square feet of move-in-ready office space with onsite HVAC. The speculative office space features conference rooms, break rooms, restrooms and open and private offices.

Second phase coming soon

At full built-out, Gateway Grand will comprise three buildings totaling more than 2.1 million square feet. The second phase of the project will feature the development of a 1.1 million-square-foot building.

Gateway Grand_2
Gateway Grand is situated within an area of East Valley, in proximity to expansive dining, retail and hotel venues. Image courtesy of Greystar

Gateway Grand Phase II is set to incorporate the same features as the already completed Phase I buildings, with an expanded 192 dock doors, 843 auto parking spaces and 2,000 square feet of speculative office space.

The facility will be adjacent to Union Pacific’s planned Pecos Industrial Rail and Train Extension. Due to its Foreign Trade Zone capability, the Gateway Grand project has the potential to reduce property taxes by more than 72 percent in perpetuity for qualified users.

Last year, Greystar Real Estate Partners broke ground on the second and last phase of a five-building industrial development in San Marcos, Texas. Full completion of the Class A project is expected this year.

Phoenix leads in industrial development

Located at 7852 and 8016 E. Pecos Road, Gateway Grand Phase I is within the city of Mesa’s Pecos Advanced Manufacturing Zone. The development is near the Phoenix-Mesa Gateway Airport and the intersection of Loop 202 and Route 24, which allows easy access across the Phoenix metropolitan area.

For industrial development, Phoenix has maintained its status as the nation’s undisputed leader. As of January, more than 42.6 million square feet of industrial space was under construction in the market—representing 11.2 percent of existing stock—according to a recent CommercialEdge report.

The metro recorded some 32.5 million square feet of industrial space delivered last year, encompassing 152 projects, or 8.6 percent of total stock. Among peer markets, Dallas came in second place, accounting for 6.6 percent of existing stock.

In 2023, 106 properties broke ground in metro Phoenix, accounting for 6.2 percent of total stock. This figure is significantly above the 1.3 percent U.S. average, according to the same source.

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