The Bottom Line for Leasing at Ak-Chin is Substantial Savings

Business owners, CFO’s and facilities managers are constantly looking for ways to reduce their company’s capital outlay and annual operating costs. If a company is looking to expand or relocate their business, this goal becomes a defining factor. That’s why leasing in a native environment like Ak-Chin’s Santa Cruz Commerce Center might be the best financial decision.

Currently, land lease prices at Santa Cruz Commerce Center average about 14 to 17 cents per square foot per year—similar to rural areas around Casa Grande, Stanfield and Eloy, but with a better location near major thoroughfares and the Ak-Chin Regional Airport. Additionally, Ak-Chin imposes no business tax and businesses locating on-Reservation pay no city or county sales taxes. At present, Ak-Chin also does not tax leases, so there’s no mark-up on the agreed lease price.

The other financial incentive for potential tenants is that the Community owns the majority of utility services, except telecommunications and natural gas service. This allows the Community to set lower rates for water, sewer, electric and trash service than can be found in surrounding communities. For example, Ak-Chin Energy Services, the Community’s electric company, charges rates that average about 20 to 27% below the utilities that serve the surrounding communities. Depending on the type of business, this can translate into an annual savings of several thousand dollars.

The Ak-Chin Industrial Park Board and Ak-Chin Community Council recently agreed to offer a build-to-suit option for well-qualified tenants at the Commerce Center. This means a building will be designed to a company’s specific needs and the cost of building and tenant improvements will be wrapped into the monthly lease price. If the company had to seek traditional financing, the term of the loan most likely would not exceed 10 years. But at the Commerce Center, these costs can be amortized over a 20-year lease, thereby reducing the monthly cost.

Though the Ak-Chin Indian Community is small—with less than 900 tribal residing members—it has made a big commitment to economic diversification and growth. “I think its size helps speed some of the processes,” says Phil Entz, Commerce Center Property Manager. “The Industrial Park Board works as a central clearinghouse for all current and future Commerce Center tenants and is really committed to making things happen. They said they were going to complete an office/warehouse complex by March 15, 2011 and they did. They said they were going to get it fully leased and it was in less than a year.”

In today’s economy and real estate market, it isn’t always easy to find sites where the landlords do what they say and deliver what they promise. Ak-Chin has proven itself. And that’s the bottom line.