PHOENIX, ARIZONA (Nov. 8, 2022) – NAI Horizon represented the tenant, a third-party warehousing, distribution, and fulfillment provider, in a pair of long-term leases totaling more than 250,000 SF for a value of $17.5 million.
NAI Horizon Executive Vice President Jeff Adams represented SKU Distribution (AES Direct Express LLC) in long-term leases at Airgate Corporate Center, 7353 E. Ray Road, and The Confluence, 8932 E. Ray Road, both in Mesa, Arizona.
SKU Distribution, which operates two other Adams’ procured facilities at 2225 E. Germann Road in Chandler, Arizona, and 2075 W. Obispo Ave., in Gilbert, Arizona, provides order fulfillment services, e-commerce warehousing, and e-commerce shipping services.
“Top-of-the-line, third-party logistics firms (3-PLs) have become a force since the advent of e-commerce and this trend was further upwardly affected by the pandemic, where many firms had to hold over seasonal products,” Adams said. “Companies with an e-commerce division have found they can accomplish much more by outsourcing warehousing, inventory and facility management, and distribution channels to the experts.
“SKU Distribution, with unique software systems, some of it proprietary, has become a leader in the fulfillment industry and consistently ranks high in measurable metrics. This requirement for additional space was necessitated by both the expansion of existing clients and the procurement of new clientele,” Adams said.
The long-term lease of the Airgate Corporation Center totals 142,735 SF ($11.2 million) in a new freestanding structure with a fenced yard. It features Loop 202 visibility and excellent signage. The landlord is Airgate Mesa Corporate Center, LLC.
The long-term lease at The Confluence totals 110,992 SF ($6.3 million). The Confluence is a new construction built by a joint venture between Ryan Cos. and DWS. It broke ground in June 2021, with the first phase totaling 516,000 SF across six buildings. The landlord is Mesa Gateway Owner, LLC (Ryan Development) of Phoenix.
Ken McQueen, Chris McClurg, and Blake Peters with Lee & Associates of Arizona represented both landlords.
About NAI Horizon
Exceptional global commercial real estate solutions begin with local market leadership and expertise. Established in 1992, NAI Horizon is a full-service commercial real estate company serving Arizona with offices in Phoenix and Tucson. NAI Horizon is passionate about commercial real estate, providing Brokerage and Property Management Services for local, national, and international clients. NAI Horizon is a member of the NAI Global commercial real estate network providing real estate solutions to more than 300 offices worldwide. For more information, visit www.naihorizon.com.
About NAI Global
Advisory Services, Leasing, Property Management, Property & Note Sales, and Tenant Representation
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 300 offices in 43 countries strategically located throughout North America, Latin America and the Caribbean, Europe, Africa, and Asia Pacific, with 5,100 local market professionals managing over 1.1 billion square feet of property and facilities. Annually, NAI Global completes more than $20 billion in commercial real estate transactions and gross revenue of $1.5 billion.
NAI Global professionals achieve extraordinary results for clients locally and globally through creativity, collaboration, and the consistent delivery of exceptional knowledge and service that only market-leading firms can provide. NAI Global provides a full range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain, logistics consulting, and related advisory services.
To learn more, visit www.naiglobal.com.