PHOENIX — A mattress manufacturing company has committed to over a one-million-square-foot lease in Glendale, officials announced Friday.
Hines, an international real estate firm, will develop manufacturer MLILY’s project while funds will be managed by Oaktree Capital Management L.P., according to a press release.
The lease filled a recently completed 569,520 square-foot building and initiates the expansion at Glendale 303 to fill MLILY’s larger, single-building lease requirement.
The building is located off the Loop 303 freeway between Glendale Avenue and Bethany Home Road and is projected to be 1.25 million square feet after its expansion, which is expected to begin during the fourth quarter of 2021 and be completed by the fourth quarter of 2022.
When complete, Glendale 303 will be the largest single-building developed by Hines to date in the United States.
The G303 building currently has 40-foot clear height and 60-foot speed bays, as well as the ability to accommodate more than 550 cars. The expansion will include a basketball court for employees to use during lunch break.
“Within the Phoenix industrial market, requirement for Class A warehouse and distribution space have been particularly high — easily outpacing demand for any other type of industrial product,” managing director of Phoenix office Bill Honsaker, who represented Hines in the lease transaction, said in a press release.
“G303 was in a prime position to capitalize on that trend with a high-quality building that was designed to expand and is strategically located within the Valley’s hottest industrial corridor — at the center of a very young and diverse talent pool.”
During the first two quarters of this year, the Valley recorded more than five million square feet of positive net absorption, marking the 31st and 32nd straight quarters of positive Phoenix industrial absorption dating back to the second quarter of 2013, according to the most recent JLL Phoenix industrial market report.