News Ticker

Three Tenants to Occupy 600K SF of Space in Phoenix Area

By Eric Jay Toll for The Arizona Builder’s Exchange

Big moves in the industrial sector swing jobs and new business into the Phoenix market. Nearly 600K SF in industrial space with potential for more than 1,000 jobs is now locked up in a trio of leases and a new operations center. These four leases equal the net absorption of all Phoenix market office space for the first half of 2012.

QBE Insurance to Open First Operations Center in Chandler

Coming to Chandler, Australian insurance company QBE Insurance Group Limited signs an 11-year lease on a 183K SF operations center at 2700 W. Frye Rd., Chandler. Opening a call center first, the facility will house upwards to 1,000 employees. The QBE FIRST customer service division will move into the building. The location was selected for its ability to offer growth, “…not only in the number of people we employ but also our infrastructure and information technology capabilities,” says Steve Lindstrom, regional operations executive for the company.

Taking over a business it acquired from the Balboa Insurance Company in mid-2011, QBE FIRST continues as one of the largest employers in Chandler. “It is great to have QBE expanding into the Chandler business community,” Mayor Jay Tibshraeny comments. “This announcement shows the confidence they have in Chandler. We look forward to continuing this partnership and appreciate their recognition of a talented regional workforce to help them grow.”

QBE FIRST plans its move into the new facility during the fourth quarter of 2012. Regent Properties is the owner and developer of the property. The lease was arranged by Jones Lang LaSalle.

CGB Enterprises Logistics Expansion

Industrial space in West Phoenix seems to be grabbed as soon as it comes on the market. Demand for facilities is high, and the supply is extremely constrained, according to Jones Lang LaSalle managing director Tony Lydon.

Two divisions of CGB Enterprises, Inc. have signed leases for 410K SF in West Phoenix.

Consolidated Grain & Barge Co.

Consolidated Grain & Barge Co., Covington, La., is the new lessee for 156K SF of industrial space, 2225 S. 75th Ave., Phoenix, in the Durango Commerce Center. The Clarion Partners industrial space is now 96 percent leased.  Cushman & Wakefield handled the lease for the owners; Lee & Associates represented the tenant.

Consolidated Terminals and Logistics Co.

At about the same time, sister company, Consolidated Terminals and Logistics Co., Mandeville, La., inks a deal for 260K SF put together by Lee & Associates in two West Phoenix warehouses. The first, a one year lease for 156K SF in the Durango Commerce Center was brokered through CBRE; the other, 104K SF, is in the Reywest Commerce Park, 3602 W. Washington St., was Jones Lang LaSalle’s work. CTLC adds this to an additional 209K SF it leases in this same location.

Photo Credit: Commercial Executive

Original Sources: BREW and Commercial Executive Magazine for CG&B and CTLC