JLL Income Property Trust Invests $140M in Metro Phoenix
The REIT acquired a 1 million-square-foot warehouse.
JLL Income Property Trust has acquired Glendale Distribution Center, a 1 million-square-foot warehouse in Glendale, Ariz., for approximately $140 million. Clarius Partners and Cresset Partners sold the asset.
New York Life Insurance Co. issued an $83.2 million construction loan in 2023, according to Yardi Research Data. The facility debuted that same year, with PUMA agreeing to occupy the property until 2038, having 3.25 percent annual rent escalations.
The apparel company also invested $100 million to implement a robotics system at the property, which at the time was the largest such installation in the U.S.
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The warehouse features a clear height of 40 feet and a truck court depth reaching 200 feet, as well as 170 dock doors and four drive-in doors. Parking arrangements consist of more than 500 car spots and 209 trailer spaces.
Located at 8900 N. Sarival Ave., the warehouse is inside a foreign trade zone, about 23 miles northwest of downtown Phoenix. Loop 303 runs less than 1 mile away, while Interstate 10 and U.S. Route 60 are within 9 miles.
Industrial remains one of the most strategically important sectors for JLL Income Property Trust, investments in the market making up 33 percent of the REIT’s $6.5 billion portfolio as of June. The company owns 58 industrial properties valued at $2 billion.
Some of the firm’s acquisitions this year include a 279,319-square-foot distribution center in Henrico, Va., and a 263,690-square-foot warehouse in Statesville, N.C., Yardi Research Data shows. The REIT paid $40.7 million for the Virginia asset and $27.8 million for the North Carolina property.
Phoenix’s unyielding industrial momentum
Amid shifts in trade policies, Phoenix has become an attractive market for corporate relocations, as they adapt to nearshoring and reshoring trends, JLL Income Property Trust President & CEO Allan Swaringen remarked in a prepared statement.
The metro’s average in-place industrial rent stood at $9.62 in June, more than a dollar above the U.S. figure, according to a Yardi Matrix report. Phoenix’s rate also grew by 6.8 percent year-over-year, marking a 60-basis point improvement over the national index. The market’s vacancy rate landed at 8 percent in June, 100 basis points lower than the U.S. average.
Solid fundamentals fueled investment within the Valley of the Sun. The market’s industrial transaction volume clocked in at $1.1 billion during the first half of 2025, the same source shows. Notably, only five markets broke the $1 billion sale figure, with Phoenix being one of them.
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