Gilbert, December 25, 2025
Schnitzer Properties has made a significant investment of $78.3 million in Gilbert, acquiring the Warner Commerce Center, a flex-industrial complex. This acquisition highlights the strong real estate market in Phoenix, as Gilbert continues to attract substantial investments. With the evolving business landscape, this acquisition is expected to foster economic growth and job creation, showcasing confidence in the region’s economic vitality and industrial capabilities.
Gilbert’s Industrial Horizon: Schnitzer Properties Invests $78M
A significant acquisition of a flex-industrial campus underscores the enduring appeal of the Phoenix metro for strategic real estate investment and robust economic expansion.
The Phoenix metropolitan area continues to solidify its reputation as a burgeoning economic hub, fueled by an unwavering entrepreneurial spirit and a dynamic business environment. Within this thriving landscape, Gilbert stands out, consistently attracting substantial private investment that signals profound confidence in the region’s future. The recent $78.3 million acquisition by Schnitzer Properties, a prominent family-owned real estate company, is a compelling testament to the market’s strength and potential. Such strategic investments play a crucial role in driving economic growth and job creation, often flourishing in environments that foster innovation and maintain favorable conditions for business development.
This latest transaction highlights how private sector capital is actively shaping the economic trajectory of our communities, providing the essential infrastructure that supports Phoenix AZ business and the broader regional economy. As Gilbert continues to evolve, the influx of capital and the development of versatile commercial spaces are vital for sustaining momentum and fostering an environment where businesses, from established corporations to emerging Arizona AZ entrepreneurs, can thrive and contribute to collective prosperity.
A Landmark Acquisition in Gilbert
Schnitzer Properties, a well-established family-owned real estate company with a rich history dating back to 1950, recently finalized a substantial acquisition in Gilbert. The company, based in Portland, closed a $78.3 million deal for the Warner Commerce Center on December 19. This significant property is a 388,000-square-foot flex-industrial complex. Schnitzer Properties is recognized as one of the Top 10 private real estate owners in the Western United States, boasting a portfolio of over 31 million square feet of property across 200+ locations in six Western states. Their business model primarily focuses on developing and managing industrial spaces that cater to the needs of small and mid-sized manufacturers, distributors, and service providers.
Schnitzer Properties’ Expanding Footprint in Phoenix
The acquisition of the Warner Commerce Center is not Schnitzer Properties’ first foray into the vibrant Phoenix AZ business landscape; it represents another significant purchase that underscores their sustained belief in the economic vitality of the region. The company’s engagement with Phoenix dates back to 1963 when it acquired its first property in the city. Today, Schnitzer Properties operates over 1.5 million square feet of space in Phoenix and holds 125 acres of land ready for further development, supported by a dedicated regional office. This long-term ownership strategy reflects a commitment to fostering community development through innovative projects, rather than merely engaging in short-term transactions. Their consistent investment demonstrates how patient capital and a strategic vision can contribute significantly to local economic growth.
Gilbert: A Hub for Industrial Growth
Gilbert’s strategic advantages continue to make it an attractive destination for industrial investment. The town benefits from a prime location and a growing logistics network, positioning it as a key submarket within the expansive Phoenix industrial landscape. While the area has experienced an increase in industrial supply in recent years, leading to some challenges, investment volume in 2024 notably increased as investors sought out the submarket’s extensive inventory of small- and mid-bay properties. This adaptability in the market, coupled with strong leasing activity across the wider Phoenix area in sectors such as logistics, construction, and manufacturing, ensures that properties like the Warner Commerce Center remain highly desirable. Such resilience in the face of evolving market conditions highlights the underlying strength and appeal of Gilbert for ongoing commercial development.
The Value of Flex-Industrial Spaces
The Warner Commerce Center’s designation as a “flex-industrial” complex is particularly noteworthy for the Phoenix small business and Arizona AZ entrepreneurs communities. Flex-industrial spaces are designed for versatility, capable of accommodating a broad spectrum of business operations, including manufacturing, warehousing, distribution, and even integrated office functions. This adaptability is critical for businesses that require scalable solutions, allowing them to adjust their physical footprint as their needs evolve without incurring substantial relocation costs or operational disruptions. By providing such adaptable properties, this acquisition supports a diverse array of industries, fostering entrepreneurial innovation and contributing to the overall resilience of the local economy. The sustained demand for modern distribution and manufacturing space, especially within smaller bay and infill properties, is a key factor supporting the resilience of the market.
Phoenix’s Enduring Economic Appeal and Future Outlook
The broader Phoenix AZ business environment continues to be a magnet for investment, driven by robust population growth, a strategic geographic location, and ongoing industrial expansion. While the industrial market has navigated a period of significant new construction, resulting in elevated vacancy rates, particularly for larger properties (around 12.4%-13.4% in Q3 2025, and over 16% for buildings larger than 100,000 square feet), the underlying demand remains robust. Leasing activity has demonstrated strength, surpassing pre-pandemic norms by 33%, indicating solid market fundamentals. The pace of new construction is beginning to moderate, a trend anticipated to help stabilize the market and facilitate the absorption of available supply. Investors are strategically targeting newly-built logistics centers and well-located small to mid-bay properties, reinforcing Phoenix’s transformation into a premier institutional-grade logistics hub. The long-term outlook for industrial demand, especially in the logistics and manufacturing sectors, remains positive, even with potential near-term market uncertainties that may influence leasing decisions.
Conclusion
Schnitzer Properties’ substantial $78.3 million investment in Gilbert’s Warner Commerce Center sends a clear signal of enduring confidence in the Phoenix AZ business market. This transaction underscores the vital role of private enterprise and strategic capital deployment in fueling continued economic growth throughout the region. As Gilbert and the greater Phoenix area continue to evolve, maintaining policies that attract such significant investments and foster a supportive environment for Arizona AZ entrepreneurs and Phoenix small business will be paramount. By championing innovation, promoting responsible development, and recognizing the contributions of resilient businesses, our community can ensure a dynamic, prosperous, and expanding local economy for years to come. Readers are encouraged to support local businesses and stay engaged with the unfolding economic landscape that defines our vibrant region.
Frequently Asked Questions
- What did Schnitzer Properties acquire in Gilbert?
- Schnitzer Properties acquired the Warner Commerce Center, a flex-industrial complex in Gilbert.
- How large is the acquired industrial campus?
- The Warner Commerce Center is a 388,000-square-foot flex-industrial complex.
- What was the value of the acquisition?
- The deal was valued at $78.3 million.
- When did the acquisition close?
- The deal closed on December 19.
- What is Schnitzer Properties’ background?
- Schnitzer Properties is a family-owned real estate investment and development company founded in Portland in 1950. It is one of the Top 10 private real estate owners in the West, owning and operating over 31 million square feet of property, primarily focused on industrial spaces.
- What is the significance of this purchase for the Phoenix metro?
- This acquisition marks another significant purchase for Schnitzer Properties in the Phoenix metro, demonstrating their continued belief in the region’s economic vitality. They acquired their first property in Phoenix in 1963 and now operate over 1.5 million square feet of space in Phoenix.
- What are the current trends in the Phoenix industrial market?
- The Phoenix industrial market is strong, aided by robust population growth and strategic location. While new construction has led to elevated vacancy rates (around 12.4%-13.4% in Q3 2025), demand remains robust, with leasing activity 33% above pre-pandemic norms. Construction activity is slowing, which may help stabilize the market.
Key Features of the Warner Commerce Center Acquisition
| Feature | Detail |
|---|---|
| Buyer | Schnitzer Properties (Portland-based, family-owned) |
| Acquired Property | Warner Commerce Center |
| Location | Gilbert, AZ |
| Purchase Price | $78.3 Million |
| Property Size | 388,000 Square Feet |
| Property Type | Flex-industrial complex |
| Closing Date | December 19 |
| Buyer’s Phoenix Presence | Operates over 1.5 million square feet in Phoenix, first acquisition in 1963 |
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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.
