Home News Warehouses, distribution centers set up in Tucson to meet online shopping growth | Subscriber

Warehouses, distribution centers set up in Tucson to meet online shopping growth | Subscriber

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Due to cheap land, less regulation and less access to major markets, Tucson is on the map of warehouses and distribution facilities.

Over the last five years, Tucson has added more than 3 million square feet of industrial space.

And the Dallas company chose Tucson to add more.

LPC Desert West, a division of Lincoln Property Co., plans to develop more than 1 million square feet of industrial space for warehouses and distribution on the southeast corner of Alvernon Way and Los Reales Road.

Called I-10 International, the property has four buildings of various sizes with refrigeration capabilities.

Doug Croquette, Vice President of Lincoln Properties, said: We make the most of this place. This includes the ability to distribute the product to 46 million people within a radius of 500 miles. “

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According to the company, the site is flexible and refrigerating, so it works for multiple small users, such as a single large user or a user in the food and beverage industry.

LPC purchased I-10 International land for $ 6.5 million from Diamond Ventures, a Tucson-based real estate development and investment company.

Construction will begin later this year and is expected to be completed in 2023.

Attract geography, cost

Tucson’s geographical attractions include access to interstate highways, Union Pacific main lines, inland ports, and airport air freight capacity.

According to Robert Glazer, the city is also known for its excellent workforce and land costs of $ 3 to $ 6 per square foot. Picor Commercial Real Estate’s industrial broker.

A few years ago, brokers lamented the lack of modern industrial space, but today several projects are underway.

A panoramic photo from four images of the land on the southeast corner of Los Reales Road and Albanon Way, where Lincoln Property plans a one million square foot facility.

Kelly Presnell, Arizona Daily Star

“It’s been a while,” said Jesse Blum, Picor’s industrial specialist.

He said that after the Great Recession, Tucson’s recovery was delayed and new construction was not feasible.

Then, in 2018, Oregon-based Harsch Investment Properties entered the Tucson market and built one of the first speculative industrial buildings in more than a decade.

“They acted like Tucson’s bells, and everyone was looking at the first building to see if it would succeed,” Blum said. “They were early followers of Tucson, risked failure and proved Tucson’s own theory.”

The 157,000-square-foot facility at 6850 S. Brosius Ave. near the airport was fully rented before construction was completed.

Operated by Schnitzer Properties LLC, the company then built other industrial buildings to specifications and recently purchased raw land on 6100 blocks on South Country Club Road and 3100 blocks on East Elvira Road for industrialization. Increased space.

Construction of the facility will begin later this year and is expected to be completed in 2023.

Courtesy of Lincoln Property

Demand is supported by the shopping habits of residents of southern Arizona.

“When Amazon pioneered its 8- to 12-hour delivery service, if things are in a warehouse in another city, you can’t do that,” Blum said. “Then a pandemic broke out, and online shoppers who didn’t do that before, the elderly who had to buy online for safety, fast-forwarded the industry for 20 years.”

The pandemic has made Tucson the number one city on Google for those who want to move to remote areas to work.

Blum said industrial investment is equal to work.

“Our community is proudly blue-collar and has huge subsections that need work,” he said. “It’s a dollar to the local economy.”

The industry also absorbs land that is unattractive to other developments.

“In areas considered devastated, this is a great tax-producing sector and will never be used for housing,” Blum said.

Contact Reporter Gabriella Rico [email protected]

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