LogiPropCo Eyes 1.2 MSF Industrial Campus in Phoenix

Logistics Property Co. has purchased 76 acres for the development of Sonoran Logistics Park, a 1.2 million-square-foot industrial campus in Phoenix’s Buckeye, Ariz. Construction is expected to start in the fourth quarter of this year, with completion slated for early 2028.

Initially, the site was to serve as Phase II of Paloma Vista Logistics Center, a 2.7 million-square-foot, four-building master-planned park. US Capital Development and Ares Management intended to develop the campus in two phases at the intersection of North Perryville and West McDowell roads.

Phase I included the 1 million-square-foot, Amazon-leased Building 1 and the 423,345-square-foot Building 2, which came online in 2024 and 2023, respectively.

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But now, the former Phase II parcels, designated for Building 3 and Building 4, will be the development site of Sonoran Logistics Park. Located near the intersection of Interstate 10 and Perryville Road, the two-building campus will have easy access to Loop 30. Phoenix and Phoenix Sky Harbor International Airport are less than 30 miles east.

A closer look at two industrial warehouses

Building 1 at Sonoran Logistics Park will total 831,576 square feet and have 40-foot clear heights, 50-by-56-foot column spacing and 60-foot speed bays as well as 162 dock doors four drive-in-doors. The warehouse will also feature 528 car parking spaces and 236 trailer parking spaces.

The 395,256-square-foot Building 2 is to have 36-foot clear heights, 50-by-56-foot column spacing, 60-foot speed bays, 842 dock doors and four drive-in doors. Some 250 auto parking spaces and 118 trailer parking spaces will also be available.

Each building will feature 15,000 amps of power, ESFR sprinklers and comprise roughly 2,500 square feet of office space. Both properties target LEED-Silver certification.

LogiPropCo. Senior Vice President Brad Cushard and Vice President Andrew Spiegel, alongside Cushman & Wakefield Executive Vice Chairs Andy Markham, Michael Haenel and Phil Haenel, arranged the transaction. The Cushman & Wakefield team will also oversee leasing at the property.

Pheonix industrial pipeline regains momentum

As of June, developers delivered 4.5 million square feet across 19 properties in metro Phoenix, which was among the top 10 markets for industrial completions. However, The Valley recorded the steepest annual decline in the lot, down 61 percent year-over-year.

Regardless, development held steady and picked up pace heading into the fall. There were 31 million square feet of industrial space under construction in Phoenix as of August, representing 6.8 percent of the existing stock, a Yardi Matrix report shows. The market ranked second nationally for pipeline size, trailing Dallas (with some 37.3 million square feet underway), but occupied the first position for share out of stock.

One of the project that broke ground in August is Avondale Tech Center, a three-building campus developed by Creation and Crow Holdings Capital. Completion is slated for the third quarter of 2027.