A multi-phased project on a large chunk of Chandler land cleared a big hurdle.Schnitzer Properties, a large developer based in Portland, Oregon, received approval on April 4 from Chandler City Council to rezone more than 85 acres across two parcels near Arizona Avenue and Ryan Road.Council adopted an ordinance that rezoned two parcels from AG-1 to a planned area development that would make way for a two-phased Schnitzer Properties’ industrial business park comprising 1.3 million square feet.In a separate agenda item, 13.4 of the 85.3 total acres were annexed into the city of Chandler from Maricopa County. The ordinances were adopted unanimously through the consent agenda, which did not require discussion before the vote was taken.The rezoning helps pave the way for the Ryan Commerce Center and Hamilton Commerce Center — the two industrial developments Schnitzer Properties plans for the site. Phase one would be the Ryan Commerce Center on the eastern side of Schnitzer’s land. That project, which would be on more than 37 acres on the southeast corner of Ryan Road and Hamilton Street, would bring three buildings that total more than 600,000 square feet.Jordan Schnitzer, president of the development company, said the firm spent about a year and half working with the city to get a proposal that ultimately received approval.He previously told the Business Journal that he hoped to break ground on the first phase by the spring of 2025. He said it would take about 10 months to complete the buildout and future users would be able to start tenant improvements by early 2026.Schnitzer project’s second phase has four buildingsHamilton Commerce Center, the project’s second phase, would be located on the western end with four buildings and more than 715,000 square feet. Schnitzer previously said the timeline for the second phase will be determined by the leasing activity on the first phase, though ideally the developer would start construction on Hamilton Commerce Center shortly after wrapping up the shells for the Ryan Commerce Center.The parcels are split by the Southern Pacific Railway line. The Arizona Railway Museum is located immediately north of the proposed Ryan Commerce Center. Schnitzer Properties is working with Adam Baugh of Withey Morris Baugh PLC for its application with Chandler. The group is working with Portland-based VLMK Engineering + Design as the project architect and Scottsdale-based Hunter Engineering LLC as its civil engineer.JLL’s Steve Larsen will be the listing broker for the new developments. Schnitzer previously said he expects to have roughly 30 tenants across the seven buildings.The case cleared a December vote by Chandler’s Airport Commission, which determined that Schnitzer’s proposed development does not constitute a conflict with existing or planned airport uses. Chandler’s Planning and Zoning Commission followed suit with a 5-0 vote on Feb. 21.The developer has built retail, business parks and industrial projects throughout the Valley, including Chandler Pavilions, Queen Creek Commerce Center and Scottsdale Airpark Commerce Center. Last year, Schnitzer raised its hand for a closed Bed Bath & Beyond located within Chandler Pavilions in a bankruptcy court auction.The city of Chandler is more than 90% built out with residential, office, industrial and retail developments. Micah Miranda, Chandler’s economic development director, said at the Phoenix Business Journal’s Growth Summit East Valley panel in 2023 that his city will need to be deliberate in the projects it pursues while also finding creative ways to ignite underutilized space.In 2023, the southeast valley submarket saw 3.2 million square feet of positive net absorption while 4.3 million square feet of new inventory was delivered in the fourth quarter alone, according to a market report from CBRE Group Inc.
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