Phoenix, January 17, 2026
A significant industrial property in Phoenix’s commercial real estate market has sold for $4.6 million, showcasing the strength of the Valley’s industrial sector. The property, measuring 44,335 square feet, is strategically located near Chase Field and will serve as an operational base for the buyer, signifying ongoing demand from businesses. The sale, facilitated by Cushman & Wakefield, marks a pivotal moment as the area continues to evolve economically and attract private investment, promising further growth in the region.
Phoenix
Phoenix Industrial Property Changes Hands in $4.6 Million Transaction, Signaling Continued Market Strength
A recent transaction in the heart of Phoenix’s industrial district underscores the enduring appeal and robust health of the Valley’s commercial real estate market, particularly within the industrial sector. This sale highlights the persistent demand from private investors and owner/users seeking strategic operational bases within a dynamic economic landscape.
The successful arrangement of this significant sale by Cushman & Wakefield reflects a confident outlook among entrepreneurs and businesses choosing to invest in the region. Such transactions are not just about property changing hands; they represent faith in local economic fundamentals, an appreciation for streamlined business environments, and the strategic deployment of capital to foster growth and operational efficiency for Phoenix AZ business enterprises.
Key Industrial Property Acquired by Owner/User
Cushman & Wakefield recently facilitated the sale of a substantial 44,335-square-foot industrial outdoor storage (IOS) facility for $4.6 million. This property, located at 724 E. Southern Pacific Drive in Phoenix, is situated on approximately 3.41 acres near Chase Field in downtown Phoenix. The buyer was an owner/user, a testament to the ongoing trend of businesses seeking to secure their own operational footprints in the thriving Phoenix market.
The seller in this transaction was Capitol Engineering, a company that had occupied this historic downtown industrial property since the 1940s. This sale marks the end of an era for the long-standing entity, demonstrating the evolution of the Phoenix industrial landscape.
Strategic Location and Robust Features Drive Value
The industrial property’s appeal lies significantly in its strategic location within one of Phoenix’s most established industrial corridors. It offers immediate access to major transportation routes, arterial highways, and regional infrastructure, which are crucial for efficient logistics and distribution operations for any Phoenix small business or larger enterprise.
Beyond location, the facility itself is well-equipped, featuring multiple warehouse and canopy structures, office space, and substantial industrial infrastructure. Key operational advantages include six entry and exit points for efficient ingress and egress across the four-building site, grade-level oversized doors, an 18-foot clear height, and heavy industrial (A-2) zoning, which provides flexibility for various industrial uses. The combination of these attributes makes it a rare opportunity for an owner/user to establish and grow their operations effectively.
Phoenix’s Industrial Market: A National Leader
The successful sale of this property aligns with broader trends in the Phoenix AZ economy, which has consistently ranked as a top industrial market in the U.S. In the first quarter of 2025, Phoenix was specifically identified as the No. 1 industrial market nationwide, a ranking based on its strong leasing volume, tenant activity, and market absorption rates. This sustained momentum highlights the region’s attractive environment for commercial growth and development.
The Greater Phoenix area continues to demonstrate significant expansion in its industrial real estate inventory. The city delivered 6 million square feet of industrial space in the fourth quarter of 2025 alone, marking the highest volume in the nation. Furthermore, the Phoenix industrial sector has seen increased deliveries over the past few years, with approximately 16 million square feet currently under construction, positioning it as the second in the nation for ongoing industrial development. While deliveries are anticipated to slow down in 2026, this is expected to lead to a stabilization of the market’s performance levels.
Driving Factors: Innovation, Investment, and a Pro-Business Environment
The demand fueling Phoenix’s industrial market is multifaceted, stemming from robust manufacturing growth, numerous major construction projects, and a thriving local economy. Diverse industries, including technology, healthcare, and real estate, contribute significantly to this sustained growth. The region’s business-friendly environment, coupled with a growing skilled workforce and advanced infrastructure, continues to attract companies seeking to expand or establish new operations.
Private investment plays a critical role in this ecosystem, providing the capital necessary for these developments and transactions. The inflow of businesses contributes to significant job creation, with thousands of positions recently added in high-tech manufacturing, logistics, healthcare, and finance sectors across Phoenix. This robust job market and a growing population, driven by net migration from other high-cost regions, further underscore the economic vitality of the metro area.
Manufacturing investment across the state reached a historic high in 2025, directly contributing to Arizona’s fastest GDP growth in decades. This demonstrates how targeted investment and a supportive regulatory climate can empower Arizona AZ entrepreneurs and established businesses to achieve remarkable personal achievement and contribute broadly to economic prosperity.
Outlook for Phoenix’s Economic Future
The industrial market, considered one of the steadiest commercial real estate classes, is projected to maintain its resilience. Although industrial vacancy rates rose slightly to 13.5% in the fourth quarter of 2025, the anticipated slowdown in new construction is expected to allow for the absorption of existing space, leading to a plateau in vacancy rates in 2025 and 2026. This balanced approach to development and absorption signifies a maturing, yet still growing, market.
Phoenix is expected to continue experiencing employment and population growth in 2026, albeit at a more moderate pace compared to the post-pandemic surge. This consistent growth, supported by a strong foundation of diverse industries and ongoing private and public investment, paints a promising picture for the future of the Phoenix AZ economy.
Embracing Growth and Opportunity
The recent industrial property sale in Phoenix is more than just a real estate headline; it’s a clear indicator of a flourishing economic environment where private capital meets opportunity. As Phoenix continues its trajectory as a hub for innovation and enterprise, it is crucial to recognize the dedication of local businesses and investors who drive this progress. We encourage our readers to support the entrepreneurial spirit that defines our community and to stay engaged with the ongoing developments shaping Phoenix’s promising economic future.
Frequently Asked Questions
What was the sale price of the Phoenix industrial property?
The final sale price of the Phoenix industrial property was $4.6 million.
Who arranged the sale of the industrial property?
Cushman & Wakefield arranged the sale of the industrial property.
What type of property was sold?
A 44,335-square-foot industrial outdoor storage (IOS) facility was sold.
Where is the industrial property located?
The property is located at 724 E. Southern Pacific Drive in Phoenix, near Chase Field in downtown Phoenix.
How large is the property?
The facility is situated on approximately 3.41 acres.
Who was the seller of the property?
The seller of the property was Capitol Engineering.
Who acquired the property?
The property was acquired by an owner/user.
Key Features of the Phoenix Industrial Property Sale
| Feature | Detail |
|---|---|
| Transaction Arranger | Cushman & Wakefield |
| Sale Price | $4.6 million |
| Property Type | 44,335-square-foot industrial outdoor storage (IOS) facility |
| Location | 724 E. Southern Pacific Drive in Phoenix, near Chase Field in downtown Phoenix |
| Acreage | Approximately 3.41 acres |
| Seller | Capitol Engineering |
| Buyer | An owner/user |
| Zoning | Heavy industrial (A-2) zoning |
| Clear Height | 18-foot clear height |
| Access Points | Six entry and exit points for efficient ingress and egress |
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Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
