Prologis Phoenix Project Moves Forward

The 113-acre development will benefit from a variety of tax breaks.

industrial real estate finance

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Prologis has, once again, big development plans for Goodyear, Ariz., and recently received the local authorities’ support. The Goodyear city council approved the designation of the 113-acre Prologis 303 Business Park as a magnet site within the Greater Maricopa County Foreign Trade Zone, which would translate to a 72 percent reduction in real property and equipment tax, among other benefits.

The inclusion brings Goodyear’s FTZ sites to a total of 770 acres, or roughly 11.7 percent of the city’s total area for industrial development. Exempt from U.S. Customs rules and regulations, these sites serve as means to attract companies and spur economic development. A Nestle USA development site was recently included in a Foreign-Trade Zone pertaining to the city of Glendale, Ariz.

The future Prologis 303 Business Park

At full build-out, the industrial campus will comprise two buildings totaling some 1.6 million square feet. The warehouses will feature a total of 330 dock-high doors and more than 720 trailer parking stalls. A JLL team is spearheading leasing efforts at the property.

Located on the southwest corner of Cotton Lane and Camelback Road, the site is just west of the Loop 303, next to the PV303 industrial campus. Corporate neighbors include Macy’s, UPS, Dick’s Sporting Goods, Ball, REI and Michael Lewis Co., among others.

Prologis’ existing industrial campus

During the same council meeting, the authorities signed a development agreement for Prologis Commerce Park at Goodyear, the firm’s first industrial campus in Goodyear. The document stated that the city will reimburse up to $1 million to Prologis for the infrastructure improvements the company made in the area. The city’s support for the Prologis 303 Business Park’s inclusion in a Foreign-Trade Zone was one of the agreement’s stipulations.

The 112-acre Prologis Commerce Park at Goodyear is at the intersection of Yuma Road and Bullard Avenue, just north of Phoenix Goodyear Airport. The master-planned park comprises more than 1.7 million square feet across four industrial buildings. Its largest component, an 855,000-square-foot warehouse completed in 2020, is fully leased by Amazon, according to CommercialEdge data.

A good year for Goodyear

Goodyear has been a magnet for developers and investors in the last 12 months, as more and more companies have decided to establish a footprint in the area. Notable names include FedEx, HelloFresh and Meyer Burger.

The city welcomed both medium- and large-size industrial projects. In September, Lincoln Property Co. and Harvard Investments acquired one of the last remaining large industrial-zoned land parcels in the area, spanning 585 acres. Upon completion, Goodyear AirPark could comprise as much as 7 million square feet of industrial space across 20 buildings.

According to a recent CommercialEdge report, greater Phoenix had more than 41 million square feet of industrial space underway as of April. In mid-May, Goodyear’s developments amounted to some 6.6 million square feet, with an additional 11 million in planned and prospective projects, the same data provider shows.

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