Surprise to see 500 new jobs with planned auto sales facility
Surprise will get up to 500 jobs added to its economic landscape following an announcement that an online auto sales company plans to move into a newly built warehouse later this year.
Dallas-based TriColor Auto Group, which already operates two facilities in the Valley, plans to lease the Blue Cactus Logistics development space on the northwest corner of Cactus Road and Summit Way, real estate services company JLL announced Wednesday.
The Missouri-based BlueScope Properties Group led the development of the 258,000-square-foot industrial property — its first in Arizona. The developer expects to complete construction of the warehouse this summer, allowing TriColor to expand its local footprint.
“We’ve had our eye on the Arizona industrial market since prior to the pandemic and have worked closely with JLL to stay updated on land opportunities,” BlueScope President Matthew Roth said in the announcement.
“When the chance came to engage in this site, we jumped on it, capitalizing on our position as a self-funded company to meet tight due diligence timing and enter the Arizona market,” Roth continued. “We’re thrilled to announce the commitment by TriColor and the hundreds of new jobs they will bring to Surprise.”
In bringing those new jobs to the area, TriColor intends to ramp up its worker base in phases. During the initial phase of the move-in, the company anticipates having about 200 employees. At full operations, TriColor expects to have up to 500 workers, according to JLL.
'Shop locally ... work locally'
Raoul Sada, president of the Northwest Valley Chamber of Commerce, called TriColor’s expansion to Surprise “awesome news.”
“TriColor is a rapidly growing auto retailer and the fact that they decided to put their third location in Arizona right here in Surprise speaks volumes of the growth we’re experiencing here in the northwest area of Phoenix,” Sada said.
The addition of about 500 new jobs will have a significant impact on the area’s employment and economic landscapes, Sada said, noting that the chamber doesn’t anticipate these positions to be highly specialized roles.
“That’ll help open up the market for greater local employment,” Sada said. “Our preference is for people to not only shop locally but also work locally. It’s great for the environment and local business community.”
Expansion in the northwest Valley
TriColor, which purchases, inspects and repairs, as well as finances and sells automobiles, will use Blue Cactus Logistics’ features. Among them are a 32-foot clear height, 60-foot speed bay — a warehouse area to stage products for loading and unloading — 26 dock doors and 1,000 stacked parking spaces. Inside, the building will be equipped with Early Suppression, Fast Response sprinklers and LED lighting.
Early suppression systems are designed to quickly discharge water, use about 100 gallons per minute and have a larger droplet size compared with traditional sprinklers.
John Lydon, JLL’s executive vice president, explained that the original plans for the warehouse were “fully speculative.” However, when TriColor became interested in the project, Blue Scope “quickly shifted the development to a build-to-suit.”
“The developer’s ability to deliver modern new industrial space, combined with this site’s ability to accommodate heavy auto parking, was the perfect combination, especially considering the high-demand characteristics of the metro Phoenix industrial market,” Lydon said in JLL’s news release.
Industrial tenants in metro Phoenix made up 18.7 million square feet of leasing in 2023, according to JLL.
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Speaking to the ongoing population and business growth in Surprise, Sada said there were multiple factors attributing to it. Largely, he said, it resulted from an abundance of undeveloped land available and the city’s educated workforce. The latter he further credited to the presence of Ottawa University and the Western Maricopa Education Center.
“What that helps to do for a company, if they’re willing to relocate, is that you have an educated workforce … it makes it more highly attractive having those in the area,” he said.
Sada said it was those factors that have likely led to TriColor’s commitment to expand in the northwest Valley.
“So, it’s the economic growth and the free market that’s really driving their decision to come out here. It’s where the customers are at," he said, adding, “It’s a strategic move for them in terms of establishing a presence in the northwest Valley.”
Shawn Raymundo covers the West Valley cities of Glendale, Peoria and Surprise. Reach him at sraymundo@gannett.com.
This article originally appeared on Arizona Republic: Surprise to see 500 new jobs with planned auto warehouse
