Article Originally Posted On Phoenix Business Journal On July 13, 2021
Developers continue to roll out big plans for industrial construction on both the east and west sides of the Valley.
In Mesa, a joint venture between Ryan Cos. and DWS is planning to begin construction in August on a speculative light industrial park called the Confluence at Mesa Gateway, which will include six industrial buildings, ranging in size from 33,000 to 177,000 square feet, for a total of 516,121 square feet.
"The Confluence at Mesa Gateway provides the much-needed industrial space for the East Valley,” Josh Tracy, director of development for Ryan Cos., said in a statement. “The site’s proximity to Phoenix-Mesa Gateway Airport provides highly skilled technology talent, substantial infrastructure, and convenient market access.”
The project will be built on a 35-acre site near Ray Road between Hawes and Ellsworth roads in Mesa, near the Phoenix-Mesa Gateway Airport. According to real estate database Vizzda, Ryan Cos. bought the land for $8.4 million. Construction is expected to be completed by June 2022.
“This project and partnership allows DWS to continue executing on its strategy to develop and own best in class industrial real estate in markets with strong fundamentals throughout the United States,” Todd Henderson, head of DWS Global Real Estate, said in a statement.
The Valley and the rest of the nation are seeing strong demand for industrial space. According to a new report by JLL, tenants need 664 million square feet of warehouse space nationally, signaling there won't be a slowdown anytime soon for the nation's hot industrial market.
According to CoStar Group Inc., the Valley has seen a record-breaking amount of industrial space under construction over the past two quarters. About 25 million square feet of industrial space was under construction in the Valley at the end of Q2 2021.