Logistics Company Buys Land For 1.2M SF Phoenix Industrial Park

A Chicago-based developer has bought 76 acres in Phoenix's Southwest Valley for a planned 1.2M SF industrial campus.

The Phoenix skyline

Logistics Property Co., or LogiPropCo, plans to break ground on Sonoran Logistics Park at the intersection of Interstate 10 and Perryville Road in Buckeye in the fourth quarter, the company announced in a Tuesday press release. 

LogiPropCo didn’t disclose a purchase price. Cushman & Wakefield brokers managed the transaction and will serve as the park’s leasing representatives, according to the release.

The park will span 1.2M SF across two buildings that will have more than 15,000 amps of available power. The company expects the project to deliver in early 2028.

The site is in a key industrial corridor, within 3 miles of Loop 303 and 30 miles from Phoenix Sky Harbor International Airport, giving it convenient access to ports in California and Mexico, according to the release.

Sonoran Logistics Park will be LogiPropCo’s third development in the Phoenix region, following the Palm Gateway Logistics Park in Mesa and the Olive Logistics Center in Glendale. Logistics centers are typically located along busy transportation corridors to streamline the storage, handling and distribution of goods. Logistics demand in the region is largely driven by semiconductor manufacturing, which Arizona ranks No. 1 in nationally.

“We’re proud to contribute to the continued growth of the Phoenix industrial market with a development designed to meet the evolving needs of today’s businesses,” Brad Cushard, LogiPropCo senior vice president for the Mountain region, said in the release.

Phoenix’s industrial market continues to grow, with significant new construction and strong tenant demand, according to a new Kidder Mathews report.

Total lease transactions totaled 7.6M SF in the third quarter, down from 7.9M SF the previous quarter. New deliveries more than tripled from the previous quarter, with 3.4M SF completed in Q3, according to the report. 

Developers across the U.S. delivered nearly 1.9B SF of industrial since the start of 2022, boosting the national inventory by about 11%, according to Colliers.

Industrial vacancy in the Phoenix area, at 11.5% in the third quarter, is expected to remain stable through the rest of 2026, as tenant demand remains strong for available space, according to Kidder Mathews.

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