BLACK CANYON BUSINESS PARK
DATE ACQUIRED
Jul. 2014
LOCATION
Phoenix, AZ
SIZE
224,650 SF
TENANTS
100
YEAR BUILT
1979
PROJECT SUMMARY
MARKET
The North I-17 corridor, comprised of 16 million square feet, provides a diverse mix of industrial, high-tech commercial and office development. The corridor, which is bounded by Northern Avenue on the south and Union Hills Drive to the north, has attracted some of the metro area’s biggest and best corporate employers including Blue Cross Blue Shield, the FBI, Honeywell, Discover Card, American Express, Petsmart HQ, FedEx, Hartford Insurance, Allstate, CIGNA, Safeway HQ, Cox Communications, Wells Fargo, Devry, and Liberty Mutual.
The corridor offers excellent interstate and regional freeway access. Interstate 17 runs north-south and connects with the Loop 101 freeway to the north and with Interstate-10 to the south, providing direct access to downtown and Phoenix Sky Harbor International Airport. Black Canyon Business Park’s location at I-17 and Northern has some of the highest traffic counts in the metro area. Average daily vehicle traffic on I 17 is 415,000 cars per day and on Northern Avenue traffic counts exceed 70,000 cars per day. This location is active, vibrant and is benefiting from new capital investments and is expected to trend upward as developers refocus on infill locations.
Black Canyon Business Park is the southern most of its competitive set. Its primary competitor is called Northwest Business Center and is owned by TA, who plans to the sell the property with the next three months. The property is located one mile north and currently the park is 82% occupied. Two miles north of the subject property are two more competitive properties, both owned by Public Storage. These properties hold current occupancy in the high 80%’s.
The remaining competitive product is located 8 miles north near the intersection of the 101 and I-17 freeways, in Deer Valley. This product’s location is generally preferred as its closer to executive housing. However, a significant amount of space contains a higher proportion of office build-out, which does not compete with the warehouse space located in the I-17 corridor.