MAGNOLIA CENTER

PROJECT SUMMARY

DATE ACQUIRED

January 2020

LOCATION

Phoenix, AZ

SIZE

35,385 SF

UNITS

2

YEAR BUILT

1984

MARKET

Strong population and job growth in the Valley of the Sun are bolstering a rapidly growing consumer base in the region and generating industrial demand. Approximately 35 million consumers can be reached within a single day’s truck ride from metro Phoenix, fueling demand for industrial space among companies in the e-commerce, logistics, and construction industries. Phoenix has also become one of the most active data center markets in the country, not only because of the vast consumer base but also due to Arizona's tax incentive for data center development, a robust and growing power grid, and limited occurrence of natural disasters. With relatively few barriers to development, a flourishing local economy, and favorable demographics, new industrial supply has consistently poured into the market. New development is primarily tailored to the logistics segment, which accounts for the bulk of completions. Even with elevated levels of construction, strong demand has maintained a vacancy rate well below the market's historical average.

Many companies established industrial operations in Phoenix because of the low cost of doing business and proximity to major regional markets, particularly in California. The average industrial rent in Phoenix is nearly 5% below the national average, and the discount is considerably higher compared to rents in key California metros. Rent growth has trailed the national average in past years, but Phoenix is now generating above-average rent gains as the rest of the U.S. regresses. Investors have become increasingly active in the local industrial market. Sales volume reached a record-high of $3.0 billion in 2019. Heightened buyer competition put continued upward pressure on pricing. Institutional investors scoured the market for well-located and quality assets in West Valley industrial hubs, which bolstered transaction volume last year.

PROJECT PHOTOS

California // Colorado // Arizona // Washington // Nevada // Oregon

CONTACT US

Phone: 949.566.8800

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BKM CAPITAL PARTNERS

 

Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and leasing to reposition and institutionalize light industrial assets, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

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BKM MANAGEMENT COMPANY

 

BKM Management Company manages a portfolio of 8.7 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties managed in the most efficient way.

 

 

 

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