The new Phoenix industrial normal: a 1.25 million-square-foot full-building industrial lease. Mattress manufacturer, Mlily, the retail brand of Healthcare Arizona LLC, a venture of China-based Healthcare Co. Ltd., recently committed to the mega-lease at Glendale 303 (G303). The lease fills a just-completed 569,520-square-foot industrial building and initiates an expansion of G303 to fulfill the tenant’s larger single-building lease requirement.

The class-A industrial project is a development of Hines, with funds managed by Oaktree Capital Management LP. When complete, G303 will become Hines’ largest single-building development to date in the country. Construction on the expansion will begin in fourth quarter 2021 and complete by fourth quarter 2022.

“The rise of e-commerce that we experienced during the pandemic has created a new steady level of demand for modern logistics and supply chain-savvy industrial space, particularly in prime geographic and demographic locations like Phoenix,” said Courtney Schneider, Hines director who oversees industrial development for Arizona and Colorado.

Bill Honsaker and John Lydon of the Phoenix office of JLL represented Hines in the lease transaction. Yang Chen of Colliers San Francisco partnered with Payson MacWilliam, Don MacWilliam and Chris Reese of Colliers Arizona in representing Healthcare Arizona LLC in the lease negotiations. The southwest division of Graycor Construction Company is the project’s general contractor.

“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,” says Honsaker.