Major Impact

BizTUCSONApril 4, 2025

3 minutes read

New Projects by Schnitzer Properties Bolster Local Industrial Space

By Tom Leyde

Schnitzer Properties is betting big on the Tucson industrial space market, long a key factor in the region’s overall economic development.

The Portland, Ore.-based builder broke ground in January on 334,000 square feet of much-needed industrial space at two new projects, the Corona Commerce Center, 2717 E. Corona Road, near Tucson International Airport, and the Drexel Commerce Center at 2730 E. Drexel Road.

Jordan Schnitzer, president of Schnitzer Properties, said he became interested in the Tucson market 10 years ago. “There hadn’t been another tilt-up warehouse (built) in 10 years,” he said. “We took a gamble and luckily leased it up.”

“We’re proud to strengthen our relationships with Sun Corridor Inc and all the wonderful real estate brokers in the Tucson area,” he said. “We hope these projects add to the growing workforce in this wonderful community.”

In addition to Arizona and Oregon, Schnitzer Properties has properties in Washington, California, Nevada and Utah. Founded in 1950 by Schnitzer’s father, Harold, the company has more than 200 properties with 33 million square feet of space and 4,500 tenants.

The company currently owns and operates more than 1.3 million square feet of industrial/flex buildings in the Tucson area. The new Tucson projects, which represent a $73 million investment, will consist of three buildings with 18 to 30 tenants, Schnitzer said.

The Drexel Commerce Center will have 184,000 square feet across two buildings, while the Corona Commerce Center will provide 146,963 square feet. Both properties will offer flexible leasing options, with spaces ranging from 6,700 to 184,000 square feet.

Schnitzer Properties has a regional office in Tucson. Its investments in the region have made a major impact on available space for new businesses.

Schnitzer and Sun Corridor Inc. connected 10 years ago when a member of Sun Corridor Inc.’s business development team met a Schnitzer representative at an event in California. They talked about Tucson, and Schnitzer began looking for building opportunities in Arizona. The company began projects in Phoenix, then expanded to Tucson.

At the time, most industrial builders were not interested in small- to medium-space spec buildings, because they didn’t think they could fill them with tenants.

“A decade ago, it was a different situation,” said Joe Snell, president and CEO of Sun Corridor Inc. “We had a fair amount of opportunities at our doorstep but, frankly, we didn’t have very much spec or built facilities. We were watching some of these companies come and go to Phoenix and other markets.

“We saw what you did in other markets like Portland and Las Vegas and we felt if you believed in us, we could see some progress,” Snell told Schnitzer at the January grounbreaking.

“More importantly, it solidified our location as a hub for logistics and distribution,” Snell said. “Tucson appreciates your friendship and investment, and we think great things are going to happen in the future.”

Pima County Supervisor Matt Heinz, whose district includes both new projects, said the centers will add much needed industrial space and jobs.

“It’s a very important step toward establishing Pima County as one of the western United States’ manufacturing and industrial hubs,” he said.

“It’s also an opportunity for the residents that I represent in this community. The companies that eventually will be operating in these spaces will bring important jobs, well-paying jobs, right here. This showcases our region as a growing and vibrant place to do business and to find a good job and to live a good life.”

Willmeng Construction of Phoenix, the largest shell builder in Arizona, will build the new projects.

“We love the game within the game and filling these buildings up with the right tenant,” said Tom Jarvis, VP of Willmeng Construction.

“The community support is unbelievable,” he said. “I am so impressed and proud and happy to be here.”

“We always run scared and nervous until we get it (a building) leased,” Schnitzer said, “but once we do, then we take a breath, and we appreciate and are humble about the fact that we were lucky to get those tenants and start the next ones and we get to be nervous again.

“We’ve had a good relationship with Tucson for 10 years, and we’ve got 65 tenants here now,” he said. “We get up every day appreciating them and being able to support them and make sure they’re in a clean and healthy environment.”