ATLAS Capital Partners is making a bold move in the Southeast Valley with the development of ATLAS Exchange, a next-gen industrial park in Mesa designed for flexibility and outdoor storage.
🏗️ Project Highlights
- Location: 38-acre site at Signal Butte & Warner Roads, Mesa (within Eastmark & Elliot Road Tech Corridor)
- Price Tag: $13.8 million land acquisition (March 2025)
- Development: Four industrial buildings ranging from 40,000 to 100,000 sq ft
- Total Size: ~255,000 sq ft
- Unique Feature: 46% of the site dedicated to Industrial Outdoor Storage (IOS)
đź’ˇ Why It Matters for Investors
- Scarce Supply: Ground-up IOS development is rare, and demand is rising fast.
- Build-to-Suit Options: Attracts a broad tenant base—last-mile logistics, contractors, telecom firms, and light manufacturers.
- Smart Design: Low-coverage layouts maximize yard functionality, appealing to tenants who need both indoor and outdoor space.
- Market Position: Walton claims it’s the “only gourmet product” of its kind in the Valley.
đź“Š Market Context
- Smaller industrial buildings (<200,000 sq ft) saw lower vacancy rates (7.5%) than the overall market.
- Southeast Valley submarket (where this is located) had the highest direct vacancy (17%) in Q4 2024—but that also signals opportunity.
- Rising IOS rents are now justifying ground-up development.
🤝 Key Players
- Developer: ATLAS Capital Partners (Scottsdale)
- Partner: Hawkins Development (Austin)
- Architect: Crawley Architects
- Builder: Sun State Builders
- Leasing: JLL’s Pat Harlan & Steve Larsen
🔍 What This Means for SFR Investors in Maricopa & Pinal County
- Industrial growth signals continued population and employment growth in the East Valley.
- More logistics and light manufacturing = stronger rental demand in nearby residential areas.
- Flexible-use industrial is becoming premium product—and where commercial investment goes, housing demand usually follows.
- ATLAS’s national scaling ambitions point to confidence in Phoenix as a growth market.